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Natural Gas flat as market prices in cold weather forecasts

Published 02/27/2013, 02:10 PM
Updated 02/27/2013, 02:11 PM

Investing.com - Natural gas futures traded largely flat on Wednesday as investors priced in colder-than-expected weather forecasts settling in for much of the country, locked in gains and then sold for profits.

On the New York Mercantile Exchange, natural gas futures for delivery in April traded at USD3.457 per million British thermal units, up 0.01%.

The commodity hit a session low of USD3.433 and a high of USD3.553.
Unseasonably cold weather is making its way towards the heavily populated central and eastern portions of the country, fueling talk March temperatures may average colder than normal before warmer weather patterns return in the spring.

The U.S. heating season, which runs from November through March, sees peak demand for gas.

About half of U.S. households use gas for heating purposes, according to Energy Department data.

Weather reports tend to wield less influence on prices once March arrives, though forecasts for a late-season chill pushed up prices significantly in recent sessions.

By afternoon trading on Wednesday, traders began to jump to the sidelines ahead of the release of the U.S. government's weekly report on natural gas supplies due out on Thursday.

Early withdrawal estimates range from 120 billion cubic feet to 173 billion cubic feet. Inventories fell by 106 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a decline of 118 billion cubic feet.

Total U.S. natural gas storage stood at 2.400 trillion cubic feet as of last week, 18% above the five-year average for this time of year.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in April were up 0.04% and trading at USD92.67 a barrel, while heating oil for April delivery were down 1.39% and trading at USD2.9848 per gallon.






 

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