Investing.com - Natural gas futures regained strength on Wednesday, as investors returned to the market to seek cheap valuations after prices fell to the lowest level since January on Tuesday.
On the New York Mercantile Exchange, natural gas for delivery in August rallied 0.94%, or 3.8 cents, to trade at $4.136 per million British thermal units during U.S. morning hours.
Natural gas futures fell to $4.081 on Tuesday, the weakest level since January 10, before settling at $4.097, down 1.21%, or 5.0 cents.
Futures were likely to find support at $4.081 per million British thermal units, the low from July 15 and resistance at $4.173, the high from July 14.
Natural gas prices have been under pressure in recent sessions after updated weather-forecasting models called for cooler temperatures across most parts of the heavily-populated Midwest and Northeast regions over the next five days.
Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use.
Meanwhile, investors readjusted positions ahead of Thursday’s closely-watched supply report to gauge the strength of cooling demand.
This weekly’s supply data was expected to show that natural gas storage in the U.S. rose by 100 billion cubic feet in the week ended July 11. The five-year average increase for the period is 65 billion.
Total U.S. natural gas storage stood at 2.022 trillion cubic feet as of last week, 24.4% below their level this time last year and 27.5% below the five-year average.
Elsewhere on the Nymex, crude oil for delivery in August rose 0.86%, or 85 cents, to trade at $100.82 a barrel, while heating oil for August delivery dropped 0.05% to trade at $2.854 per gallon.