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Natural gas prices gain as weather models call for warming trend

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Investing.com - Natural gas prices gained on Wednesday after updated weather forecasting models toned down their calls for below-normal temperatures for parts of the northeastern U.S. and predicted a warming trend for the bulk of the country.

Rising summer temperatures often hike the need for gas-fired electricity to cool homes and businesses, which increases demand for natural gas.

In the New York Mercantile Exchange, natural gas futures for delivery in August traded at USD3.674 per million British thermal units, up 0.46%.

The commodity hit a session low of USD3.632 and a high of USD3.787.

Prices fell in recent sessions after weather services called for pockets of below-normal temperatures across parts of the eastern U.S., though by Wednesday, forecasts for temperatures to come in at normal to above-normal for the lower 48 U.S. states for much of July allowed for modest gains.

Traders also kept an eye on U.S. inventory levels. 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 82 billion cubic feet to 102 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 71 billion cubic feet.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in August were up 2.17% and trading at USD105.78 a barrel, while heating oil futures for August delivery were up 0.50% at USD3.0005 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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