Investing.com - Natural gas prices carried Tuesday's weather-fueled gains into Wednesday as investors continued trade on expectations that below-normal temperatures will drive up demand for heating in homes and businesses across most of the country.
On the New York Mercantile Exchange, natural gas futures for delivery in January traded at USD4.268 per million British thermal units during U.S. trading, up 0.73%.
The commodity hit a session low of USD4.175 and a high of USD4.268.
The January contract settled up 0.12% at USD4.237 per million British thermal units on Tuesday.
Futures were likely to find support at USD3.951 per million British thermal units, Thursday's low, and resistance at USD4.287, Tuesday's high.
Natural gas prices continued to post gains after updated weather-forecasting models continued to call for cold air to stick around for much of December, with forecasts for thawing snaps allowing for slight bouts of profit taking.
Colder temperatures hike the need for heating this time of year, thus increasing demand for natural gas at the nation's thermal power generators.
Meanwhile, U.S. supply levels remained in focus. Total U.S. natural gas storage stood at 3.614 trillion cubic feet as last week, more than 5% below last year's unusually high level and nearly 3% below the five-year average for this time of year.
Early withdrawal estimates for Thursday's storage data range from a draw of 75 billion cubic feet to 86 billion cubic feet, compared to a drop of 8 billion cubic feet during the same week a year earlier.
The five-year average change for the week is a decline of 76 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in January were down 0.76% and trading at USD97.76 a barrel, while heating oil for January delivery were down 0.24% and trading at USD3.0101 per gallon.
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