Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Natural gas prices slide as market preps for spring's arrival

Published 03/11/2014, 12:28 PM
Updated 03/11/2014, 12:31 PM

Investing.com - Natural gas futures slid on Tuesday as markets began to look towards next week's arrival of spring, which brings milder temperatures in the U.S. and curbs demand for heating.

On the New York Mercantile Exchange, natural gas futures for delivery in April traded at $4.588 per million British thermal units during U.S. trading, down 1.35%. The commodity hit session high of $4.682 and a low of $4.574.

The April contract settled up 0.71% on Monday to end at $4.651 per million British thermal units.

Natural gas futures were likely to find support at $4.558 per million British thermal units, Monday's low, and resistance at $4.732, the Monday's high.

Expectations that sweeping cold fronts will begin to wane, while warmer spring temperatures lie just around the corner sent natural gas prices falling on Tuesday.

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, updated weather-forecasting models called for normal to above-normal temperatures across many heavily populated areas in the U.S. in the next three to five days, which also sent prices slumping.

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.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in April were down 0.66% and trading at $100.45 a barrel, while heating oil for April delivery were down 0.17% and trading at $2.9624 per gallon.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.