Investing.com - Natural gas futures rose on Wednesday after the market viewed the commodity as oversold.
Forecasts for warmer temperatures to return to the central and northeastern portions of the country sent prices plunging in recent sessions.
On the New York Mercantile Exchange, natural gas futures for delivery in March traded at USD3.326 per million British thermal units, up 2.09%.
The commodity hit a session low of USD3.256 and a high of USD3.344.
Updated weather forecast models released earlier this week pointed to milder temperatures setting in the middle of February, giving the U.S. Midwest and Northeast a break from below-normal temperatures that have pushed up energy prices.
The Commodity Weather Group predicted above-normal temperatures in the eastern half of the U.S. from Feb. 7 through Feb. 11.
The news sent gas prices falling though investors felt the commodity had fallen to attractive levels by Wednesday.
Natural gas futures are very sensitive to weather reports in the U.S. winter.
The U.S. heating season running from November through March sees peak demand for gas.
About half of U.S. households use gas for heating purposes, according to Energy Department data.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in March were up 0.05% and trading at USD97.62 a barrel, while heating oil for March delivery were down 0.03% and trading at USD3.0976 per gallon.
Forecasts for warmer temperatures to return to the central and northeastern portions of the country sent prices plunging in recent sessions.
On the New York Mercantile Exchange, natural gas futures for delivery in March traded at USD3.326 per million British thermal units, up 2.09%.
The commodity hit a session low of USD3.256 and a high of USD3.344.
Updated weather forecast models released earlier this week pointed to milder temperatures setting in the middle of February, giving the U.S. Midwest and Northeast a break from below-normal temperatures that have pushed up energy prices.
The Commodity Weather Group predicted above-normal temperatures in the eastern half of the U.S. from Feb. 7 through Feb. 11.
The news sent gas prices falling though investors felt the commodity had fallen to attractive levels by Wednesday.
Natural gas futures are very sensitive to weather reports in the U.S. winter.
The U.S. heating season running from November through March sees peak demand for gas.
About half of U.S. households use gas for heating purposes, according to Energy Department data.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in March were up 0.05% and trading at USD97.62 a barrel, while heating oil for March delivery were down 0.03% and trading at USD3.0976 per gallon.