Investing.com - U.S. natural gas prices rose for the second consecutive session on Wednesday, as market participants looked ahead to fresh weekly information on U.S. gas inventories to gauge the strength of demand for the fuel.
On the New York Mercantile Exchange, natural gas for delivery in May tacked on 3.4 cents, or 1.32%, to trade at $2.564 per million British thermal units during U.S. morning hours. Prices touched an intraday peak of $2.572, the most since April 9.
A day earlier, natural gas rose 1.9 cents, or 0.76%, to close at $2.530. Prices fell to $2.475 on Monday, a level not seen since June 2012.
Futures were likely to find support at $2.475 per million British thermal units, the low from April 13, and resistance at $2.646, the high from April 9.
The U.S. Energy Information Administration's next storage report due on Thursday is expected to show a build of approximately 45 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.
Total U.S. natural gas storage stood at 1.476 trillion cubic feet as of April 3, 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.
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.
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.
Elsewhere on the Nymex, crude oil for delivery in May rose 59 cents, or 1.11%, to trade at $53.88 a barrel, while heating oil for May delivery advanced 1.09% to trade at $1.821 per gallon.