Investing.com - Natural gas futures moved higher on Monday after updated weather-forecasting models called for warm temperatures for a good portion of U.S. in the coming days, which should prompt thermal power plants to burn more of the commodity to meet demand for air conditioning.
On the New York Mercantile Exchange, natural gas futures for delivery in July traded at $4.753 per million British thermal units during U.S. trading, up 0.28%. The commodity hit a session high of $4.824 and a low of $4.670.
The July contract settled down 0.48% on Friday to end at $4.739 per million British thermal units.
Natural gas futures were likely to find support at $4.504 per million British thermal units, Wednesday''s low, and resistance at $4.827, the high from May 7.
In its June 16-22 Weather Forecast Summary, Natgasweather.com reported that high pressure that brought warmer temperatures to the southern U.S. will while push to the north into the Midwest and Northeast.
By Tuesday, highs will be in the upper-80s to lower 90s in many highly-populated eastern U.S. cities, Natgasweather.com reported, and the warm, summertime mercury readings should hike demand for air conditioning.
Meanwhile, market players kept an eye out towards Thursday''s U.S. supply report. Utilities added 107 billion cubic feet of gas into storage in the week ending June 6, below forecasts for an increase of 110 billion cubic feet.
Total U.S. natural gas storage stood at 1.606 trillion cubic feet as of last week, nearly 31% below their level this time last year and 35% below the five-year average.
Producers would need to add approximately 2.6 trillion cubic feet to storage by November 1 to meet typical winter demand, according to analysts.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in August were up 0.14% at $106.32 a barrel, while heating oil for July delivery were up 0.32% at $2.9973 per gallon.