Investing.com - Natural gas futures moved higher on Tuesday as forecasts calling for cooler-than-average temperatures into the beginning of May bolstered the demand outlook for the home heating fuel.
On the New York Mercantile Exchange, natural gas futures for delivery in June traded at $4.756 per million British thermal units, up 0.87%.
The latest weather forecasts said that the Midwest and eastern regions of the U.S. would see cool temperatures stretch for longer than has previously been anticipated, to close out the month.
The forecasts raised concerns over whether natural gas producers will be able to refill inventories before the next heating season.
U.S. natural gas stockpiles are close to the lowest levels in 11 years after severely cold weather over the past winter, and the first two storage increases of the season have been far smaller than expected. Producers typically replenish inventories between April and October, when demand is lower.
The heating season from November through March is the peak demand period for U.S. gas consumption. Approximately 52% of U.S. households use natural gas for heating, according to the Energy Department.
Last week the U.S. Energy Information Administration reported that natural gas stockpiles in the week ended April 11 stood at 850 billion cubic feet. Analysts have estimated that inventories will need to rise to approximately 3.1 trillion cubic feet by November 1.
Elsewhere on the NYMEX, crude oil futures for delivery in June dropped 1.44% to $102.16 a barrel, while heating oil contracts for June delivery rose 0.73% to $3.0020 per gallon.