Investing.com - Natural gas futures were higher during U.S. morning trade on Wednesday, as market players continued to monitor shifting weather forecasts for the next few weeks to gauge the strength of U.S. heating demand.
On the New York Mercantile Exchange, natural gas futures for delivery in March traded at USD3.326 per million British thermal units during U.S. morning trade, up 0.8% on the day.
It earlier fell by as much as 1.2% to trade at a session low of USD3.260 per million British thermal units.
Natural gas prices regained strength after updated weather forecasts released earlier called for near-term cold in the eastern half of the country.
Gains were limited as the extended weather outlook predicted milder weather that should curb heating demand.
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.
Concerns over bloated inventory levels also kept a lid on gains. 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.
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.
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.
The heating fuel has lost nearly 10% since rallying to two-month high of USD3.644 per million British thermal units on January 21, after updated weather forecast models pointed to mostly mild temperatures for mid-February.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in March dropped 1.2% to trade at USD96.58 a barrel, while heating oil for March delivery dipped 0.1% to trade at USD3.157 per gallon.
On the New York Mercantile Exchange, natural gas futures for delivery in March traded at USD3.326 per million British thermal units during U.S. morning trade, up 0.8% on the day.
It earlier fell by as much as 1.2% to trade at a session low of USD3.260 per million British thermal units.
Natural gas prices regained strength after updated weather forecasts released earlier called for near-term cold in the eastern half of the country.
Gains were limited as the extended weather outlook predicted milder weather that should curb heating demand.
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.
Concerns over bloated inventory levels also kept a lid on gains. 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.
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.
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.
The heating fuel has lost nearly 10% since rallying to two-month high of USD3.644 per million British thermal units on January 21, after updated weather forecast models pointed to mostly mild temperatures for mid-February.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in March dropped 1.2% to trade at USD96.58 a barrel, while heating oil for March delivery dipped 0.1% to trade at USD3.157 per gallon.