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Natural gas prices gain on bottom fishing as market looks to spring

Published 03/10/2014, 01:30 PM
Updated 03/10/2014, 01:31 PM

Investing.com - Natural gas futures rose on Monday after bottom fishers snapped up nicely-priced positions in the commodity, though expectations for demand to wane with the arrival of spring in the U.S. capped gains.

On the New York Mercantile Exchange, natural gas futures for delivery in April traded at $4.639 per million British thermal units during U.S. trading, up 0.44%. The commodity hit session high of $4.733 and a low of $4.558.

The April contract settled down 0.94% on Friday to end at $4.618 per million British thermal units.

Natural gas futures were likely to find support at $4.463 per million British thermal units, the low from March 3, and resistance at $4.736, the high from March 3.

Concerns that the coldest part of winter has passed, while warmer spring temperatures lie just around the corner sent natural gas prices falling to levels ripe for profit taking on Monday.

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.

Elsewhere, forecasts for below-normal temperatures across parts of the U.S. supported prices, though concerns cool snaps will be short-lived failed to spark a noteworthy rally.

Total U.S. natural gas storage stood at 1.196 trillion cubic feet as of last week, the lowest for this time of year since 2004, following a withdrawal of 152 billion cubic feet.

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Elsewhere on the NYMEX, light sweet crude oil futures for delivery in April were down 1.47% and trading at $101.07 a barrel, while heating oil for April delivery were down 1.66% and trading at $2.9619 per gallon.

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