Natural Gas extends gains on bullish supply data, chilly weather reports

                     Natural gas futures were up in mid-session trading on Monday though off earlier 6-week highs after investors priced in bullish supply data and frosty weather reports into trading and softened a multi-session rally.

On the New York Mercantile Exchange, natural gas futures for delivery in April traded at USD3.643 per million British thermal units, up 0.37%.

The commodity hit a session low of USD3.591 and a high of USD3.647.
Weather forecasting models continued to indicate that colder weather will stay in place for the heavily populated eastern half of the country and hike demand for heating in households and businesses.

However, with springtime weather patterns just around the corner, investors grew a little cautious and began to avoid the commodity.However, supply data released late last week continued to support natural gas.

On Thursday, the U.S. Energy Information Administration said in its weekly report that natural gas storage in the week ending March 1 fell by 146 billion cubic feet, well beyond market expectations for a drop of 134 billion cubic feet.

Inventories fell by 92 billion cubic feet in the same week a year earlier, while the five-year average change for the week represented a decline of 107 billion cubic feet.

Total U.S. natural gas storage stood at 2.083 trillion cubic feet as of last week. Stocks were 361 billion cubic feet less than last year at this time and 269 billion cubic feet above the five-year average of 1.814 trillion cubic feet for this time of year.

The report showed that in the East Region, stocks were 73 billion cubic feet above the five-year average, following net withdrawals of 77 billion cubic feet.

Stocks in the Producing Region were 123 billion cubic feet above the five-year average of 694 billion cubic feet after a net withdrawal of 58 billion cubic feet.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in April were down 0.25% and trading at USD91.72 a barrel, while heating oil for April delivery were down 0.15% and trading at USD2.9705 per gallon.

Courtesy : INVESTING.COM