Investing.com - Natural gas futures rose on Wednesday after updated weather-forecasting models called for below-normal temperatures hovering over parts of the central and eastern U.S. in the coming days, which should hike demand for heating.
On the New York Mercantile Exchange, natural gas futures for delivery in May traded at $4.585 per million British thermal units during U.S. trading, up 1.11%. The commodity hit session high of $4.499 and a low of $4.587.
The May contract settled up 1.30% on Tuesday to end at $4.534 per million British thermal units.
Natural gas futures were likely to find support at $4.22 per million British thermal units, the low from April 2, and resistance at $4.732, the high from March 10.
Forecasts for below-normal temperatures in the U.S. Midwest and Northeast over the next six to 10 days sent natural gas prices rising, as the cold snap should hike demand for heating in homes and offices in the area.
Gains were limited, however, as concerns an eventual return of mild temperatures typical of this time of year will curb demand for both heating and air conditioning.
Elsewhere, supply data remained in focus.
The U.S. Energy Information Administration was set to release its storage data for the week ended April 4 on Thursday, with many analysts expecting the report to show the first build in inventories since November.
Severely cold weather over this past winter saw natural gas stockpiles fall to 11-year lows, sparking concerns that producers may not be able to refill inventories before the next heating season.
Producers typically replenish inventories between April and October, when demand is lower.
The heating season from November through March is the peak demand period for U.S. gas consumption. Approximately 52% of U.S. households use natural gas for heating, according to the Energy Department.
Last week’s government supply data showed that natural gas storage in the U.S. fell by 74 billion cubic feet, much more than the five-year average drop of 8 billion cubic feet for this time of year.
Total U.S. natural gas storage stood at 822 billion cubic feet, the lowest for this time of year since 2003.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in May were up 0.92% and trading at $103.50 a barrel, while heating oil for May delivery were up 0.48% and trading at $2.9498 per gallon.