Investing.com - Natural gas futures shot up on Tuesday as blizzard was set to roar across the northeast and hike demand for heating.
On the New York Mercantile Exchange, Natural Gas futures for delivery in May traded at $4.386 per million British thermal units during U.S. trading, up 2.66%. The commodity hit session high of $4.394 and a low of $4.275.
The May contract settled down 0.58% on Monday to end at $4.272 per million British thermal units.
Natural gas futures were likely to find support at $4.258 per million British thermal units, Monday's low, and resistance at $4.585, the high from March 17.
A powerful storm was forming over the Atlantic and poised roar across the northeastern U.S. later Tuesday, dumping heavy snow along the way.
Investors snapped up the commodity on expectations that demand for natural gas will be stronger than once expected, though forecasts for a return of milder springtime temperatures in the coming days capped gains.
Total U.S. natural gas storage stood at 953 billion cubic feet as of last week, the lowest for this time of year since 2003, following a smaller than expected withdrawal of 48 billion cubic feet.
Early withdrawal estimates for this Thursday’s storage data range from a decline of 36 billion cubic feet to 76 billion cubic feet, compared to a drop of 90 billion cubic feet during the same week a year earlier.
The five-year average change for the week is a decline of 7 billion cubic feet.
Natural gas prices have been under heavy selling pressure in recent sessions amid concerns that the arrival of spring will bring warmer temperatures throughout the U.S. and cut into demand for heating.
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.
Elsewhere on the NYMEX, light sweet Crude Oil futures for delivery in May were up 0.09% and trading at $99.69 a barrel, while Heating Oil for May delivery were up 0.62% and trading at $2.9281 per gallon.