Investing.com - Natural gas futures jumped higher on Friday after updated weather-forecasting models called for a return of colder temperatures by the end of December, which should drive demand for heating.
On the New York Mercantile Exchange, natural gas futures for delivery in January were up 4.51% at $3.798 per million British thermal units during U.S. trading. The commodity hit a session low of $3.645, and a high of $3.802.
The January contract settled down 1.94% on Thursday to end at $3.634 per million British thermal units.
Natural gas futures were likely to find support at $3.606 per million British thermal units, Wednesday's low, and resistance at $3.824, last Friday's high.
Milder temperatures hovering over the U.S. should give way to colder mercury readings by the end of the month, which should prompt households and businesses to crank up their heating, which natural gas prices rising despite uncertainty as to how far south colder temperatures will go.
"We expect high pressure to build into the western U.S. around Dec. 22-24th, which will open the door for much colder Canadian air to spill southward toward the northern U.S.," Natgasweather.com reported in its Friday Midday Update.
"But the pattern is very tricky as there will be numerous weather systems given opportunity to tap into much colder temperatures, but how much they do, and also how far into the U.S. colder air advances is a challenge."
Investors continued to digest Thursday's bullish supply report.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended Dec. 5 fell by 51 billion cubic feet, more than expectations for a decline of 45 billion and compared to a drop of 22 billion in the previous week.
Inventories fell by 92 billion cubic feet in the same week a year earlier, while the five-year average change is a drop of 72 billion cubic feet.
Total U.S. natural gas storage stood at 3.359 trillion cubic feet. Stocks were 186 billion cubic feet less than last year at this time and 351 billion cubic feet below the five-year average of 3.710 trillion cubic feet for this time of year.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in January were down 3.85% at $57.64 a barrel, while heating oil for January delivery were down 1.66% at $2.0272 per gallon.