Investing.com - Natural gas futures shook off weakness to trade higher on Wednesday, as investors returned to the market to seek cheap valuations after prices fell to an 11-week low earlier in the session.
On the New York Mercantile Exchange, natural gas for delivery in May traded at $4.337 per million British thermal units during U.S. morning hours, up 1.44%, or 6.1 cents.
Natural gas futures fell to a session low of $4.222 per million British thermal units earlier, the weakest level since January 19.
The May contract lost 2.17%, or 9.5 cents, on Tuesday to settle at $4.276 per million British thermal units.
Futures were likely to find support at $4.204 per million British thermal units, the low from January 19 and resistance at $4.390, the high from April 1.
Natural gas prices have been under heavy selling pressure in recent sessions amid concerns that the arrival of spring will bring warmer temperatures throughout the U.S. and cut into demand for heating.
Spring and fall see the weakest demand for natural gas in the U.S, as the absence of extreme temperatures curbs demand for heating and air conditioning.
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.
Market players looked ahead to Thursday’s closely-watched weekly supply data to gauge the strength of demand for the fuel.
Total U.S. natural gas storage stood at 896 billion cubic feet as of last week, the lowest for this time of year since 2003, following a larger than expected withdrawal of 57 billion cubic feet.
Elsewhere on the Nymex, light sweet crude oil for delivery in May shed 0.53%, or 53 cents, to trade at $99.20 a barrel, while heating oil for May delivery dropped 0.97% to trade at $2.859 per gallon.
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