Investing.com - Natural gas futures retreated from a three-week high on Wednesday, as traders continued to focus on near-term weather forecasts to gauge the strength of demand for the fuel.
Market participants also looked ahead to Thursday’s closely-watched U.S. supply data to gauge the strength of demand from U.S. households.
On the New York Mercantile Exchange, natural gas futures for delivery in November traded at USD3.698 per million British thermal units during U.S. morning trade, down 0.5%.
Nymex gas price rose by as much as 0.45% earlier in the session to hit a daily high of USD3.732 per million British thermal units, the strongest level since September 19.
The November contract settled 2.4% higher at USD3.716 per million British thermal units on Tuesday.
Futures were likely to find support at USD3.482 per million British thermal units, the low from October 4 and resistance at USD3.809, the high from September 19.
Prices remained supported as updated weather forecasting models pointed to warmer-than-average temperatures in the central and eastern U.S. through October 21, boosting near-term demand expectations for the fuel.
Forecasts originally called for seasonably mild temperatures during the period.
Meanwhile, the U.S. Energy Information Administration is expected to release its weekly supply report as scheduled on Thursday, despite the government shutdown.
The data was expected to show that U.S. natural gas stockpiles rose by 96 billion cubic feet, compared to a 73 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 84 billion cubic feet.
Total U.S. natural gas storage stood at 3.487 trillion cubic feet as of last week, nearly 4% below last year's unusually high level but 1.4% above the five-year average for this time of year.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in November fell 1% to trade at USD102.45 a barrel, while heating oil for November delivery declined 0.6% to trade at USD3.014 per gallon.
Market participants also looked ahead to Thursday’s closely-watched U.S. supply data to gauge the strength of demand from U.S. households.
On the New York Mercantile Exchange, natural gas futures for delivery in November traded at USD3.698 per million British thermal units during U.S. morning trade, down 0.5%.
Nymex gas price rose by as much as 0.45% earlier in the session to hit a daily high of USD3.732 per million British thermal units, the strongest level since September 19.
The November contract settled 2.4% higher at USD3.716 per million British thermal units on Tuesday.
Futures were likely to find support at USD3.482 per million British thermal units, the low from October 4 and resistance at USD3.809, the high from September 19.
Prices remained supported as updated weather forecasting models pointed to warmer-than-average temperatures in the central and eastern U.S. through October 21, boosting near-term demand expectations for the fuel.
Forecasts originally called for seasonably mild temperatures during the period.
Meanwhile, the U.S. Energy Information Administration is expected to release its weekly supply report as scheduled on Thursday, despite the government shutdown.
The data was expected to show that U.S. natural gas stockpiles rose by 96 billion cubic feet, compared to a 73 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 84 billion cubic feet.
Total U.S. natural gas storage stood at 3.487 trillion cubic feet as of last week, nearly 4% below last year's unusually high level but 1.4% above the five-year average for this time of year.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in November fell 1% to trade at USD102.45 a barrel, while heating oil for November delivery declined 0.6% to trade at USD3.014 per gallon.