Investing.com - Natural gas futures rose on Wednesday on a news that a winter storm has stalled over the northeastern U.S., which should drive demand for heating in the coming days.
On the New York Mercantile Exchange, natural gas futures for delivery in January were up 1.62% at $3.711 per million British thermal units during U.S. trading. The commodity hit a session low of $3.606, and a high of $3.742.
The January contract settled up 1.59% on Tuesday to end at $3.652 per million British thermal units.
Natural gas futures were likely to find support at $3.585 per million British thermal units, Monday's low, and resistance at $3.824, Friday's high.
A storm dumping snow and rain over the northeastern U.S. has stalled, which should drive demand for heating, especially once it passes and brings colder air in its wake.
Still, prices didn't soar as inbound weather systems due to trek across the U.S. later this week won't bring frigid air needed to spark a stronger rally.
"A more impressive storm is pummeling the West Coast as a strong Pacific jet stream brings abundant moisture, which is leading to copious amounts of much needed rainfall, including over drought stricken California. There will be a weather system moving into Texas out of the West this weekend, which will bring showers, but it will be relatively mild as it will fail to tap colder air," Natgasweather.com reported in its Wednesday midday update.
"A system slated to arrive early next week will bring a quick burst of colder temperatures to the Great Lakes and New England as two weather systems phase together. This should be followed by another period of relatively mild conditions for much of central and eastern U.S. from December 17-21st, which will lead to lighter than normal heating demand."
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 4.54% at $60.92 a barrel, while heating oil for January delivery were down 2.02% at $2.0420 per gallon.