Investing.com - Natural gas prices carried Friday's gains into Monday after updated weather-forecasting models called for colder temperatures to hold their grip over much of the U.S. in the coming days, which should drive demand for heating.
On the New York Mercantile Exchange, natural gas futures for delivery in December were up 3.32% at $4.002 per million British thermal units during U.S. trading. The commodity hit a session low of $3.990, and a high of $4.065.
The December contract settled up 1.20% on Friday to end at $3.873 per million British thermal units.
Natural gas futures were likely to find support at $3.620 per million British thermal units, last Tuesday's low, and resistance at $4.184, the high from Oct. 1.
A strong cold front has pushed deep into the eastern U.S., bringing below-normal temperatures over many regions, which has driven demand for heating.
While some areas are thawing, more cooler air may be on the way.
"It will remain mild over much of the southern and eastern U.S. until Thursday when a weather system and cool blast races through the Midwest and into the East with showers and slightly cooler than normal temperatures," Natgasweather.com reported in its midday update for Monday.
"There will also be rain or snow showers into the coldest air over the Great Lakes. This system won't be nearly as cold as this past weekend's, but it will still drop overnight lows into the 30s and 40s over much of the East."
Investors continued to digest last Thursday's weekly inventory data.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ending Oct. 24 rose by 87 billion cubic feet, above expectations for an increase of 85 billion and compared to a gain of 94 billion in the previous week.
Inventories rose by 45 billion cubic feet in the same week a year earlier, while the five-year average change is a build of 59 billion cubic feet.
Injections of gas into storage have surpassed the five-year average for 28 consecutive weeks, alleviating concerns over tightening supplies.
Total U.S. natural gas storage stood at 3.480 trillion cubic feet. Stocks were 294 billion cubic feet less than last year at this time and 310 billion cubic feet below the five-year average of 3.790 trillion cubic feet for this time of year.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in December were up 0.04% at $80.57 a barrel, while heating oil for December delivery were up 0.82% at $2.5315 per gallon.