Investing.com - Natural gas prices moved up and down on Friday after updated weather-forecasting models called for mild temperatures in the coming days, which should curb demand for both air conditioning and heating.
Trading was choppy, however, as longer-term models predicted significant cooling in the eastern U.S. later in October.
On the New York Mercantile Exchange, natural gas futures for delivery in November were up 0.39% at $4.030 per million British thermal units during U.S. trading. The commodity hit a session low of $3.970, and a high of $4.034.
The November contract settled up 1.24% on Thursday to end at $4.014 per million British thermal units.
Natural gas futures were likely to find support at $3.845 per million British thermal units, Tuesday's low, and resistance at $4.100, the high from Sept. 17.
Natural gas futures dipped lower as markets prepped for seasonably mild temperatures to trek across the eastern U.S., though the prospects of much colder air following suit in October boosted the commodity back into positive territory in choppy trading.
"What will be important to the markets is what happens late next week when a colder Canadian weather system tracks across the northern Rockies and towards the Midwest. It most certainly will bring a cool down where overnight lows will be near freezing and daytime highs struggle to get out of the 40s and 50s," Natgasweather.com reported in its midday update for Friday.
"This will certainly ease strong bearish weather headwinds as modest demand for heating will occur. More importantly, this will be the first real test to see just how sensitive the markets are to colder temperatures."
A lackluster supply report allowed for choppy trading as well.
The Energy Information Administration reported on Thursday that U.S. Natural Gas Storage rose by 97 billion cubic feet last week compared to 90 billion in the week before.
Analysts had expected U.S. Natural Gas Storage to rise by 94 billion cubic feet last week.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in November were up 1.18% at $93.62 a barrel, while heating oil for October delivery were up 0.19% at $2.7008 per gallon.