Investing.com - Natural gas futures slipped lower on Wednesday as investors looked ahead to upcoming U.S. inventories data, but losses were checked as forecasts for cooler spring weather continued to underpin the demand outlook.
On the New York Mercantile Exchange, natural gas futures for delivery in May traded at $4.517 per million British thermal units during U.S. trading, down 0.39%.
Natural gas futures were likely to find support at $4.432 per million Btu, Monday’s low and resistance at $4.626, the high of March 12.
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.
Meanwhile, forecasts were calling for colder-than-average temperatures in the Midwest and Northeast during the next six to 10 days, which could underpin demand for the heating fuel.
Elsewhere on the NYMEX, crude oil futures for delivery in May edged up 0.10% to $102.66 a barrel, while heating oil contracts for May delivery rose 0.21% to $2.9408 per gallon.