Investing.com - U.S. natural gas futures rose to a 12-week high on Wednesday, as investors monitored near-term weather forecasts to gauge the strength of demand for the fuel ahead of Thursday’s closely-watched supply report.
On the New York Mercantile Exchange, natural gas for delivery in November rose to a session high of $4.184 per million British thermal units, a level not seen since July 10.
Prices trimmed gains to last trade at $4.135 during U.S. morning hours, up 1.3 cents from Tuesday's closing price of $4.121.
Futures were likely to find support at $4.011 per million British thermal units, the low from September 29 and resistance at $4.193, the high from July 10.
Updated weather forecasting models calls for colder-than-normal temperatures in the U.S. Midwest over the next five days, which could boost demand for the heating fuel.
Meanwhile, the U.S. Energy Information Administration’s weekly storage report slated for release on Thursday is expected to show an increase of 106 billion cubic feet for the week ending September 26.
The five-year average gain for the period is 85 billion.
Injections of gas into storage have surpassed the five-year average for 23 consecutive weeks, alleviating concerns over tightening supplies.
Total U.S. natural gas storage stood at 2.988 trillion cubic feet as of last week, narrowing the deficit to the five-year average to 12.5% from a record 54.7% at the end of March.
Elsewhere on the Nymex, crude oil for delivery in November tacked on 95 cents to trade at $92.11 a barrel, while heating oil for November delivery inched up 1.02% to trade at $2.677 per gallon.