Investing.com - U.S. 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 November on Tuesday.
On the New York Mercantile Exchange, natural gas for delivery in August inched up 0.41%, or 1.5 cents, to trade at $3.788 per million British thermal units during U.S. morning hours. Prices held in a range between $3.756 and $3.817.
Prices fell to a session low of $3.755 on Tuesday, the weakest level since November 26, before coming off the lows to settle at $3.772, down 2%, or 7.7 cents.
Futures were likely to find support at $3.741 per million British thermal units, the low from November 26 and resistance at $3.866, the high from July 22.
Natural gas prices have been under heavy selling 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 ten 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 95 billion cubic feet in the week ended July 18.
Total U.S. natural gas storage stood at 2.129 trillion cubic feet as of last week, narrowing the deficit to the five-year average to 25.5%, down from a record 54.7% at the end of March.
Injections of gas into storage have surpassed the five-year average for 13 consecutive weeks.
Elsewhere on the Nymex, crude oil for delivery in September eased up 0.28%, or 29 cents, to trade at $102.68 a barrel, while heating oil for August delivery tacked on 0.65% to trade at $2.872 per gallon.