Investing.com - U.S. natural gas futures rallied sharply on
Tuesday, as bullish chart signals prompted investors to reenter the
market after last week's heavy losses.
On the New York Mercantile Exchange, natural gas for delivery in
September jumped 2%, or 7.7 cents, to trade at $3.868 per million
British thermal units during U.S. morning hours.
A day earlier,
fell to $3.727, the lowest since July 28, before turning higher to
settle at $3.792, up 0.42%, or 1.6 cents.
Futures were likely to find support at $3.727 per million
British thermal units, the low from August 18 and resistance at
$3.906, the high from August 15.
Nymex natural gas prices tumbled 4.69%, or 18.6 cents, last
week, the biggest weekly loss in a month.
However, prices regained strength after prices bounced off key
support close to the $3.725-level on Monday, triggering a flurry of
Updated weather-forecasting models predicted cooler-than normal
weather over the next week or so, before warmer weather moves in
across much of the Central part of the country over the subsequent
Demand for natural gas tends to fluctuate in the summer based on
hot weather and air conditioning use.
Meanwhile, the U.S. Energy Information Administration said in
its weekly report on August 15 that natural gas storage in the U.S.
rose by 78 billion cubic feet last week.
The number was below expectations for an increase of 83 billion
cubic feet, but higher than the five-year average change for the
week of an increase of 45 billion cubic feet.
Injections of gas into storage have surpassed the five-year
average for 17 consecutive weeks, alleviating concerns over
Total U.S. natural gas storage stood at 2.467 trillion cubic
feet as of last week, narrowing the deficit to the five-year
average to 18.9% from 20.3% a week earlier and down from a record
54.7% at the end of March.
The EIA's next storage report is slated for release on Thursday,
August 21, with analysts expecting a build of 82 billion cubic feet
for the week ending August 15.
Inventories rose by 58 billion cubic feet in the same week a
year earlier, while the five-year average change is a build of 48
billion cubic feet.
Elsewhere on the Nymex, crude oil for delivery in October eased
up 0.09%, or 8 cents, to trade at $93.83 a barrel, while heating
oil for September delivery tacked on 0.34% to trade at $2.814 per
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