Natural gas prices gain on expectations for muted supply hikes

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Investing.com - Natural gas prices rose on Wednesday as investors bet that Thursday's supply data will show only modest increases.

On the New York Mercantile Exchange, natural gas futures for delivery in November traded at USD3.590 per million British thermal units during U.S. trading, up 0.86%.

The November contract settled down 3.21% at USD3.559 per million British thermal units on Tuesday.

The commodity hit a session low of USD3.561 and a high of USD3.596.

U.S. supply levels remained in focus. Total U.S. natural gas storage stood at 3.299 trillion cubic feet as of last week, 0.5% above the five-year average for the same week and 5.4% below last year's unusually high level.

Early injection estimates for this week's storage data range from 61 billion cubic feet to 78 billion cubic feet, compared to a 79 billion cubic feet increase during the same week a year earlier.

The five-year average for the week is a build of 75 billion cubic feet.

Meanwhile, investors looked past the bearish impact that fall's arrival has on prices.

Updated weather forecasting models called for seasonably mild temperatures to linger across the eastern half of the U.S. through Oct. 9.

Demand for natural gas tends to wane at the country's thermal power plants as temperatures decline, as homes and businesses throttle back on their air conditioners, especially in autumn and in spring.

Hot or cold temperatures tend to boost demand for the commodity.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in November were down 0.28% and trading at USD102.84 a barrel, while heating oil for October delivery were up 0.60% and trading at USD2.9786 per gallon.








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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Forex and Currencies

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