Investing.com - U.S. natural gas futures rose to a more than one week high on Tuesday, as updated weather forecasting models called for more cold weather over the next two weeks. Forecasts originally called for mild winter weather during the period.
Natural gas for delivery in March on the New York Mercantile Exchange tacked on 1.8 cents, or 0.84%, to trade at $2.173 per million British thermal units by 14:40 GMT, or 9:40AM ET. It earlier rose to $2.216, the most since January 14. On Monday, futures inched up 1.4 cents, or 0.65%.
New weather forecasts released mid-day Monday called for below-average temperatures over the eastern half of the nation in the next 11-to-15 days.
Bullish speculators are betting that the cold weather will increase winter demand for the heating fuel. The heating season from November through March is the peak demand period for U.S. gas consumption.
Natural gas storage in the U.S. fell by 178 billion cubic feet last week, according to the U.S. Energy Information Administration, below expectations for a decline of 184 billion. That compared with a drawdown of 168 billion cubic feet in the prior week, while the five-year average change for the week is a withdrawal of 191 billion cubic feet.
Total U.S. natural gas storage stood at 3.297 trillion cubic feet, 19.1% higher than levels at this time a year ago and 14.3% above the five-year average for this time of year.
The EIA's next storage report slated for release on Thursday, January 28 is expected to show a withdrawal of approximately 206 billion cubic feet for the week ending January 22.
Inventories fell 112 billion cubic feet in the same week last year, while the five-year average change for the week is a drawdown of 174 billion cubic feet.
Elsewhere on the Nymex, crude oil for delivery in March rose 24 cents, or 0.79%, to trade at $30.58 a barrel, while heating oil for March delivery rallied 1.32% to trade at $0.9626 per gallon.