Wk2 March natural gas futures slightly changed
US natural gas futures were little changed on Friday, as market players continued to monitor extended weather forecasts to gauge the strength of demand for the fuel.
On the New York Mercantile Exchange, natural gas for delivery in April dipped 0.2 cents, or 0.07%, to settle at US$2.839 per million British thermal units by close of trade.
Futures were likely to find support at US$2.743 per million British thermal units, the low from March 5, and resistance at US$2.888, the high from February 26.
Despite Friday’s modest decline, Nymex natural gas prices rose 14.8 cents, or 3.84%, on the week, as a recent cold blast stoked heating demand.
Nymex gas prices hit an intraday high of US$2.870 on Friday, the most since February 26, as forecasts for slightly cooler-than-normal weather over the next two weeks supported prices.
Bullish speculators are betting that colder weather will increase demand for the heating fuel. Approximately 49% of U.S. households use natural gas for heating, according to the Energy Department.
The heating season from November through March is the peak demand period for U.S. gas consumption.
But prices remained under pressure amid indications supplies are more than ample to meet demand.
Total U.S. natural gas storage stood at 1.710 trillion cubic feet as of last week, 40.4% above year-earlier levels and 7.7% below the five-year average for this time of year.
Last spring, supplies were 55% below the five-year average, indicating producers have mostly made up for last winter’s unusually strong demand.
According to the U.S. Energy Information Administration, natural gas storage in the US in the week fell by 228 billion cubic feet last week, compared to expectations for a decline of 222 billion.
Supplies fell by 144 billion the same time last year, while the five-year average change for the week is a decline of 115 billion cubic feet.
The Energy Information Administration’s next storage report slated for release on March 12 is expected to show a withdrawal of approximately 200 billion cubic feet for the week ending March 6.
Supplies fell by 189 billion the same time last year, while the five-year average change for the week is a decline of 116 billion cubic feet.
Elsewhere on the Nymex, crude oil for April delivery settled at $49.61 a barrel by close of trade on Friday, down 15 cents, or 0.3%, on the week.
Meanwhile, heating oil for April delivery dropped 5.3% on the week to settle at US$1.869 per gallon by close of trade Friday.
Despite Friday’s modest decline, Nymex natural gas prices rose 14.8 cents, or 3.84%, on the week, as a recent cold blast stoked heating demand.
Nymex gas prices hit an intraday high of $2.870 on Friday, the most since February 26, as forecasts for slightly cooler-than-normal weather over the next two weeks supported prices.
Bullish speculators are betting that colder weather will increase demand for the heating fuel. Approximately 49% of U.S. households use natural gas for heating, according to the Energy Department.
The heating season from November through March is the peak demand period for U.S. gas consumption.
But prices remained under pressure amid indications supplies are more than ample to meet demand.
Total U.S. natural gas storage stood at 1.710 trillion cubic feet as of last week, 40.4% above year-earlier levels and 7.7% below the five-year average for this time of year.
Last spring, supplies were 55% below the five-year average, indicating producers have mostly made up for last winter’s unusually strong demand.
According to the U.S. Energy Information Administration, natural gas storage in the U.S. in the week fell by 228 billion cubic feet last week, compared to expectations for a decline of 222 billion.
Supplies fell by 144 billion the same time last year, while the five-year average change for the week is a decline of 115 billion cubic feet.
The Energy Information Administration’s next storage report slated for release on March 12 is expected to show a withdrawal of approximately 200 billion cubic feet for the week ending March 6.
Supplies fell by 189 billion the same time last year, while the five-year average change for the week is a decline of 116 billion cubic feet.
Elsewhere on the Nymex, crude oil for April delivery settled at $49.61 a barrel by close of trade on Friday, down 15 cents, or 0.3%, on the week.
Meanwhile, heating oil for April delivery dropped 5.3% on the week to settle at $1.869 per gallon by close of trade Friday.