Natural gas futures edged off 5-week highs on Tuesday after investors
finished pricing in colder-than-expected weather forecasts into their
trading strategies and then sold for profits.
On the New York Mercantile Exchange, natural gas futures for delivery in April traded at USD3.462 per million British thermal units, down 0.22%.
The commodity hit a session low of USD3.430 and a high of USD3.515.
A blast of cold air is set to grip the heavily populated central and eastern portions of the country, fueling talk late-season temperatures may come in colder than normal before warmer weather patterns return in the spring.
The U.S. National Weather Service predicted that cold weather will settle in over the U.S. for the next six-to-10-days, while weather service provider AccuWeather said it expected temperatures in the Northeast and Midwest to range from normal to below normal for the next 10 days.
Natural gas futures are very sensitive to weather reports in the U.S. winter.
The U.S. heating season, which runs from November through March, sees peak demand for gas.
About half of U.S. households use gas for heating purposes, according to Energy Department data.
Weather forecasts tend to wield less influence on prices once March arrives, though forecasts for a late-season chill pushed up prices significantly in recent sessions.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in April were down 0.754% and trading at USD92.41 a barrel, while heating oil for April delivery were down 2.40% and trading at USD3.0238 per gallon.
On the New York Mercantile Exchange, natural gas futures for delivery in April traded at USD3.462 per million British thermal units, down 0.22%.
The commodity hit a session low of USD3.430 and a high of USD3.515.
A blast of cold air is set to grip the heavily populated central and eastern portions of the country, fueling talk late-season temperatures may come in colder than normal before warmer weather patterns return in the spring.
The U.S. National Weather Service predicted that cold weather will settle in over the U.S. for the next six-to-10-days, while weather service provider AccuWeather said it expected temperatures in the Northeast and Midwest to range from normal to below normal for the next 10 days.
Natural gas futures are very sensitive to weather reports in the U.S. winter.
The U.S. heating season, which runs from November through March, sees peak demand for gas.
About half of U.S. households use gas for heating purposes, according to Energy Department data.
Weather forecasts tend to wield less influence on prices once March arrives, though forecasts for a late-season chill pushed up prices significantly in recent sessions.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in April were down 0.754% and trading at USD92.41 a barrel, while heating oil for April delivery were down 2.40% and trading at USD3.0238 per gallon.
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