Investing.com - U.S. natural gas prices rose on Tuesday, as investors returned to the market to seek cheap valuations in wake of recent losses which took futures to the lowest level in almost three years.
On the New York Mercantile Exchange, natural gas for delivery in May tacked on 3.2 cents, or 1.27%, to trade at $2.543 per million British thermal units during U.S. morning hours.
A day earlier, natural gas fell to $2.475, a level not seen since June 2012, before settling at $2.511, unchanged for the day.
Futures were likely to find support at $2.459 per million British thermal units, the low from June 18, 2012, and resistance at $2.646, the high from April 9.
Natural gas prices have been under heavy selling pressure in recent weeks amid speculation the end of the winter heating season will bring warmer temperatures throughout the U.S. and cut into demand for the fuel.
Prices are likely to remain vulnerable in the near-term as the coldest part of the winter has effectively passed and below-normal temperatures in April mean less than they do in January and February.
Spring usually sees the weakest demand for natural gas in the U.S, as the absence of extreme temperatures curbs demand for heating and air conditioning.
The heating season from November through March is the peak demand period for U.S. gas consumption.
Approximately 49% of U.S. households use natural gas for heating, according to the Energy Department.
Indications that supplies are more than ample to meet demand helped limit gains.
Total U.S. natural gas storage stood at 1.476 trillion cubic feet as of last week, 79% above year-ago levels and 10.5% below the five-year average for this time of year.
Last spring, supplies were 55% below the five-year average, indicating producers have made up for most of last winter’s unusually strong demand.
The U.S. Energy Information Administration's next storage report slated for release on Thursday, April 16 is expected to show a build of approximately 26 billion cubic feet for the week ending April 10.
Supplies rose by 22 billion cubic feet in the same week last year, while the five-year average change is an increase of 35 billion cubic feet.
Elsewhere on the Nymex, crude oil for delivery in May rose 73 cents, or 1.41%, to trade at $52.64 a barrel, while heating oil for May delivery advanced 0.59% to trade at $1.793 per gallon.