Investing.com - Natural gas futures advanced during U.S. morning trade on Wednesday, hitting the highest level in almost two weeks as forecasts showing unusually cold weather boosted demand expectations for the heating fuel.
On the New York Mercantile Exchange, natural gas futures for delivery in March traded at USD3.437 per million British thermal units during U.S. morning trade, up 1.1% on the day.
It earlier rose by as much as 1.4% to trade at a session high of USD3.455 per million British thermal units, the strongest level since January 25.
Natural gas prices were higher for a third day after the Commodity Weather Group projected a snowstorm hitting the Midwest and Northeast around February 14.
Meanwhile, updated weather forecasts released earlier continued to call for near-term cold in the eastern half of the country.
Weather service provider AccuWeather said that it expected the low in Chicago on February 15 to be 10 degrees Fahrenheit (minus 13 Celsius), 12 degrees below normal.
Bullish speculators are betting on the frigid weather increasing winter demand for the heating fuel.
The heating season from November through March is the peak demand period for U.S. gas consumption. Nearly 50% of all U.S. households use gas for heating.
Market players now looked ahead to a closely-watched U.S. government report on natural gas supplies on Thursday. Early withdrawal estimates for this week’s storage data range from 127 billion cubic feet to 173 billion cubic feet.
Inventories fell by 94 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a decline of 165 billion cubic feet.
Total U.S. natural gas storage stood at 2.802 trillion cubic feet as of last week, 6.7% below last year’s level, but 12.2% above the five-year average for this time of year.
If withdrawals for the rest of winter season match the five-year average pace, inventories will end the heating season at 2.032 trillion cubic feet, nearly 18% above normal, but 18% below last year's end-winter record of 2.48 trillion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in March tumbled 1.2% to trade at USD95.51 a barrel, while heating oil for March delivery shed 0.35% to trade at USD3.181 per gallon.
On the New York Mercantile Exchange, natural gas futures for delivery in March traded at USD3.437 per million British thermal units during U.S. morning trade, up 1.1% on the day.
It earlier rose by as much as 1.4% to trade at a session high of USD3.455 per million British thermal units, the strongest level since January 25.
Natural gas prices were higher for a third day after the Commodity Weather Group projected a snowstorm hitting the Midwest and Northeast around February 14.
Meanwhile, updated weather forecasts released earlier continued to call for near-term cold in the eastern half of the country.
Weather service provider AccuWeather said that it expected the low in Chicago on February 15 to be 10 degrees Fahrenheit (minus 13 Celsius), 12 degrees below normal.
Bullish speculators are betting on the frigid weather increasing winter demand for the heating fuel.
The heating season from November through March is the peak demand period for U.S. gas consumption. Nearly 50% of all U.S. households use gas for heating.
Market players now looked ahead to a closely-watched U.S. government report on natural gas supplies on Thursday. Early withdrawal estimates for this week’s storage data range from 127 billion cubic feet to 173 billion cubic feet.
Inventories fell by 94 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a decline of 165 billion cubic feet.
Total U.S. natural gas storage stood at 2.802 trillion cubic feet as of last week, 6.7% below last year’s level, but 12.2% above the five-year average for this time of year.
If withdrawals for the rest of winter season match the five-year average pace, inventories will end the heating season at 2.032 trillion cubic feet, nearly 18% above normal, but 18% below last year's end-winter record of 2.48 trillion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in March tumbled 1.2% to trade at USD95.51 a barrel, while heating oil for March delivery shed 0.35% to trade at USD3.181 per gallon.