Investing.com - Natural gas futures rose on Friday after investors priced in losses stemming from mild U.S. temperatures and snapped up nicely-priced positions in the commodity.
Longer-range forecasts suggesting a return of colder weather supported the commodity as well.
On the New York Mercantile Exchange, natural gas futures for delivery in January were up 3.32% at $3.770 per million British thermal units during U.S. trading. The commodity hit a session low of $3.650, and a high of $3.822.
The January contract settled down 4.10% on Thursday to end at $3.649 per million British thermal units.
Natural gas futures were likely to find support at $3.638 per million British thermal units, Thursday's low, and resistance at $4.529, the high from Nov. 26.
Mild U.S. temperatures hovering over the U.S. have sent natural gas prices plunging in recent sessions by fueling concerns that households and businesses across the country have been scaling back on their heating.
By Friday, investors had felt the commodity had fallen far enough, with bottom fishers sending prices up into positive territory, especially after long-range computer models couldn't rule out a return of colder weather later in December.
"We still expect a few fairly cold weather systems next week that will track into the Midwest and Northeast with sub-freezing temperatures December 8-10th, and this has only been reinforced by the latest weather data and will result in a surge in heating demand," Natgasweather.com reported in its Friday midday update.
While shots of warmer air will also trek across the country on the Pacific jet stream, through the middle of December, colder temperatures may make their return.
"This mild and moist U.S. pattern should last through around December 20th, or right up to the start of winter. There will be stronger potential for colder air to arrive after December 21st if the Pacific jet fizzles or shifts offshore and will need close monitoring," Natgasweather.com added.
Investors continued to digest Thursday's weekly U.S. supply report, which revealed that natural gas storage in the week ending Nov. 28 fell by 22 billion cubic feet, less than expectations for a decline of 41 billion and well below a drop of 162 billion in the week before.
The five-year average change for the week is a decrease of 50 billion cubic feet. Stockpiles fell by 141 billion in the same week a year earlier.
Total U.S. natural gas storage stood at 3.410 trillion cubic feet. Stocks were 227 billion cubic feet less than last year at this time and 372 billion cubic feet below the five-year average of 3.782 trillion cubic feet for this time of year.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in January were down 1.26% at $65.97 a barrel, while heating oil for January delivery were down 0.22% at $2.1130 per gallon.