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Natural gas dips on forecasts for U.S. thawing trend

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Investing.com -

Investing.com - Natural gas futures edged lower on Monday after updated weather-forecasting models called for a break in frigid temperatures across the portions of the eastern U.S. in the coming days.

On the New York Mercantile Exchange, natural gas futures for delivery in April traded at $4.572 per million British thermal units during U.S. trading, down 0.80%. The commodity hit session high of $4.736 and a low of $4.530.

The April contract settled up 2.17% on Friday to end at $4.609 per million British thermal units.

Natural gas futures were likely to find support at $4.447 per million British thermal units, Thursday's low, and resistance at $5.207, the high from Feb. 24.

A winter storm pounding a swathe of the eastern U.S. will give way to milder temperatures by the middle of March, which sent natural prices sliding on expectations for heating demand to wane.

Portions of the western half of the country could see above-normal temperatures in the first half of March, which also softened prices.

Weekly supply data due remained in focus as well.

Total U.S. natural gas storage stood at 1.348 trillion cubic feet as of last week, the lowest for this time of year since 2004, following a withdrawal of 95 billion cubic feet.

Early withdrawal estimates for this week's storage data ranged from 140 billion cubic feet to 174 billion cubic feet, which is mostly above the year-ago draw of 149 billion cubic feet and well above the five-year average draw of 105 billion.

The heating season from November through March is the peak demand period for U.S. gas consumption. Approximately 52% of U.S. households use natural gas for heating, according to the Energy Department.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in April were up 1.74% and trading at $104.37 a barrel, while heating oil for April delivery were up 1.79% and trading at $3.0703 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 Nasdaq, Inc.


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

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