Investing.com - U.S. natural gas futures extended gains from the prior session on Tuesday, as forecasts for chilly temperatures across key consumption regions of the U.S. boosted demand expectations for the fuel.
Natural gas for delivery in November on the New York Mercantile Exchange jumped 4.4 cents, or 1.8%, to trade at $2.487 per million British thermal units during U.S. morning hours.
A day earlier, natural gas futures tacked on 1.2 cents, or 0.49%, as a cold blast hit the U.S. Northeast, boosting near-term demand expectations for the heating fuel.
Updated weather forecasting models showed that a cold front will impact the northern U.S. through October 28.
Bullish speculators are betting on the cold weather boosting early-winter demand for the heating fuel. The heating season from November through March is the peak demand period for U.S. gas consumption.
Meanwhile, U.S. supply levels remained in focus. According to the Energy Information Administration, natural gas storage increased by 100 billion cubic feet last week, above expectations for an increase of 93 billion. Supplies rose by 105 billion cubic feet in the same week last year, while the five-year average change is an increase of 87 billion cubic feet.
Total U.S. natural gas storage stood at 3.733 trillion cubic feet, 13.6% higher than during the same week a year earlier and 4.7% above the five-year average for this time of year.
Last spring, supplies were 55% below the five-year average, indicating producers have more than made up for all of last winter’s unusually strong demand.
The EIA's next storage report slated for release on Thursday, October 22 is expected to show a build of approximately 100 billion cubic feet for the week ending October 16.
That compares with builds of 94 billion cubic feet in the same week last year, while the five-year average change for the week is an increase of 84 billion cubic feet.
Elsewhere on the Nymex, crude oil for delivery in December inched up 7 cents, or 0.15%, to trade at $46.35 a barrel, while heating oil for November delivery shed 0.7% to trade at $1.439 per gallon.