Investing.com - Natural gas futures rallied to hit a two-week high on Wednesday, as market players continued to focus on near-term weather forecasts to gauge the strength of demand for the fuel.
Traders also looked ahead to Thursday's closely-watched U.S. supply data to gauge the strength of demand from U.S. households.
On the New York Mercantile Exchange, natural gas futures for delivery in August traded at USD3.712 per million British thermal units during U.S. morning trade, up 1.5% on the day.
The August contract rose by as much as 3.3% earlier in the day to hit a session high of USD3.787 per million British thermal units, the strongest level since June 24.
Revised weather forecasting models released earlier pointed to warmer-than-normal temperatures in the U.S. Northeast and Midwest over the next five days, boosting demand expectations for the fuel.
Futures came under pressure on Tuesday after forecasts called for mild weather during the period.
Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use.
Meanwhile, U.S. supply levels also remained in focus. Total U.S. natural gas storage stood at 2.605 trillion cubic feet as of last week, just 1.1% below the five-year average and 16% below last year's level.
Early injection estimates for this week's storage data range from 75 billion cubic feet to 100 billion cubic feet, compared to a 34 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 74 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in August rallied 1.6% to trade at USD105.15 a barrel, while heating oil for August delivery added 0.2% to trade at USD2.992 per gallon.
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