Source : Investing.com
U.S. natural gas futures rose to a more than one week
high on Tuesday, as updated weather forecasting models called for more
cold weather over the next two weeks. Forecasts originally called for
mild winter weather during the period.
Natural gas
for delivery in March on the New York Mercantile Exchange tacked on 1.8
cents, or 0.84%, to trade at $2.173 per million British thermal units
by 14:40 GMT, or 9:40AM ET. It earlier rose to $2.216, the most since
January 14. On Monday, futures inched up 1.4 cents, or 0.65%.
New weather forecasts released mid-day Monday called for
below-average temperatures over the eastern half of the nation in the
next 11-to-15 days.
Bullish speculators are betting that the cold weather will increase
winter demand for the heating fuel. The heating season from November
through March is the peak demand period for U.S. gas consumption.
Natural gas storage
in the U.S. fell by 178 billion cubic feet last week, according to the
U.S. Energy Information Administration, below expectations for a decline
of 184 billion. That compared with a drawdown of 168 billion cubic feet
in the prior week, while the five-year average change for the week is a
withdrawal of 191 billion cubic feet.
Total U.S. natural gas storage stood at 3.297 trillion cubic feet,
19.1% higher than levels at this time a year ago and 14.3% above the
five-year average for this time of year.
The EIA's next storage report slated for release on Thursday, January
28 is expected to show a withdrawal of approximately 206 billion cubic
feet for the week ending January 22.
Inventories fell 112 billion cubic feet in the same week last year,
while the five-year average change for the week is a drawdown of 174
billion cubic feet.
Elsewhere on the Nymex, crude oil for delivery in March rose 24 cents, or 0.79%, to trade at $30.58 a barrel, while heating oil for March delivery rallied 1.32% to trade at $0.9626 per gallon.
