Investing.com - U.S. natural gas futures rose to their highest level in three days on Tuesday as the decline in the U.S. dollar spurred investors to buy the fuel ahead of the winter.
On the New York Mercantile Exchange, natural gas for delivery in November were last up 0.86% to $3.944 per million British thermal units.
Prices rose to a session high of $3.959 earlier, the highest since Thursday.
Futures were likely to find support at $3.786 per million British thermal units, the low from September 12 and resistance at $3.990, the high from September 19.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.22% to 84.62, after rising to highs of 84.86 in the previous session, the most since July 2010.
A stronger greenback makes dollar-priced commodities become more expensive for holders of other currencies.
However, gains were held in check as forecasts for milder temperatures in the Southern U.S. weighed on the demand outlook for gas-powered electricity. The use of air conditioning is a key source of summer demand for natural gas.
Updated weather forecasting models calling for comfortable temperatures indicated that larger than normal natural gas inventory builds could be expected to continue for at least several more weeks.
The U.S. Energy Information Administration said in its report last week that natural gas storage in the U.S. rose by 90 billion cubic feet last week.
Injections of gas into storage have surpassed the five-year average for 22 consecutive weeks, alleviating concerns over tightening supplies.
Elsewhere on the Nymex, crude oil for delivery in November was up 0.73% to $91.53 a barrel, while heating oil for October delivery slid 0.16% to $2.6829 per gallon.