Investing.com - Natural gas prices posted solid gains on Monday after investors felt forecasts for milder U.S. weather sent the commodity falling to attractively-priced levels.
On the New York Mercantile Exchange, natural gas futures for delivery in October were up 1.83% at $3.863 per million British thermal units during U.S. trading. The commodity hit a session low of $3.767, and a high of $3.878.
The October contract settled down 0.68% on Friday to end at $3.793 per million British thermal units.
Natural gas futures were likely to find support at $3.732 per million British thermal units, the low from Aug. 17, and resistance at $4.078, last Tuesday's high.
Natural gas prices took a dive last week after weather forecasts called for below-normal temperatures to move across the country this week, which should cut into demand for air conditioning and prompt thermal power plants to burn less of the commodity as a result.
By Monday trading, bottom fishers felt the commodity had fallen too far and sent it back into positive territory, especially on talk the cool snap may prompt northern households to turn on their heating, which could hike demand for natural gas.
"After this week’s strong Canadian cold front pushes through, reinforcing weather systems will track across the northern and central U.S. with showers, thunderstorms, and slightly cooler than normal temperatures. The southern U.S. will still require some cooling demand due to warm but not hot temperatures, while the far northern U.S. could see light overnight heating demand at times as lows drop into the 40s," Natgasweather.com reported in its Sept. 15-21 outlook.
"The western U.S. will remain very warm as high pressure continues to bring above normal temperatures, including over many high population California cities."
Investors continued to digest Thursday's inventory data.
The Energy Information Administration reported earlier that U.S. natural gas storage rose by 79 billion cubic feet in the week ending Aug. 29 from 75 billion cubic feet in the preceding month.
Analysts were expected a build of 73 billion cubic feet, and the greater-than-expected figure softened natural gas prices.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in October were down 1.11% at $92.25 a barrel, while heating oil for October delivery were down 0.43% at $2.8072 per gallon.