Natural gas prices posted slight gains on Monday after updated weather-forecasting models called for warming temperatures in the southern U.S., which should prompt thermal power plants to burn more of the commodity to meet demand for air conditioning. Natural gas gains as temperatures seen rising in southern U.S.Natural gas prices climb on warm forecasts for southern U.S. Still, futures dipped into negative territory at times due to uncertainty as how mild temperatures elsewhere may cut into demand for both heating and air conditioning. On the New York Mercantile Exchange, natural gas futures for delivery in November were up 0.28% at $3.914 per million British thermal units during U.S. trading. The commodity hit a session low of $3.865, and a high of $3.939. The November contract settled down 1.81% on Friday to end at $3.903 per million British thermal units. Natural gas futures were likely to find support at $3.786 per million British thermal units, the low from Sept. 12, and resistance at $4.100, last Wednesdays high. After brief cool snap for the Midwest and Northeast, comfortable temperatures will head northward beginning Wednesday, though pockets of warmer air elsewhere may drive demand for air conditioning. This will set up almost the entire U.S. with daytime highs reaching the 70s and 80s into next week, with the hottest conditions over the southern U.S. where light cooling demand will be needed, Natgasweather reported in its Monday midday update. Uncertainty typical of this time of year prevented prices from rallying. We continue to watch closely the strengthening cold pool over northern Canada for signs of it advancing toward the U.S. This likely wont happen until after October 5th, at the earliest. The northern U.S. will see weather systems track across, especially as October begins, but they should fail to tap into the significantly cold northern Canadian air, Natgasweather added. Meanwhile, the U.S. Energy Information Administration said in its weekly report on Sept. 18 that natural gas storage in the U.S. rose by 90 billion cubic feet last week. Inventories rose by 64 billion cubic feet in the same week a year earlier, while the five-year average change is a build of 60 billion cubic feet. Injections of gas into storage have surpassed the five-year average for 22 consecutive weeks, alleviating concerns over tightening supplies. Total U.S. natural gas storage stood at 2.891 trillion cubic feet as of last week, narrowing the deficit to the five-year average to 13.3% from 14.2% a week earlier and down from a record 54.7% at the end of March. Elsewhere on the NYMEX, light sweet crude oil futures for delivery in November were down 0.85% at $90.88 a barrel, while heating oil for October delivery were down 0.94% at $2.6911 per gallon.
Posted on: Tue, 23 Sep 2014 05:31:24 +0000