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MTECHTIPS:-Natural gas futures soar 4% on Northeast cold blast
U.S. natural gas prices rallied more than 4% on Tuesday, as a cold blast was expected to hit the U.S. Northeast later this week, boosting near-term demand expectations for the heating fuel.On the New York Mercantile Exchange, natural gas for delivery in April jumped 11.8 cents, or 4.36%, to trade at $2.834 per million British thermal units during U.S. morning hours. Futures were likely to find support at $2.680 per million British thermal units, the low from March 16, and resistance at $2.864, the high from March 12. Updated weather forecasting models showed that a cold front will impact the northern U.S. through March 23, carrying rain and snow, while the rest of the country will enjoy seasonal or higher temperatures. On Monday, natural gas for delivery in April dipped 1.1 cents, or 0.4%, to settle at $2.716 amid speculation the end of the winter heating season will bring warmer temperatures throughout the U.S. and cut into demand for the fuel. Prices remain vulnerable to a pullback in the near-term as the coldest part of the winter has effectively passed and below-normal temperatures in March mean less than they do in January and February. The heating season from November through March is the peak demand period for U.S. gas consumption. Approximately 49% of U.S. households use natural gas for heating, according to the Energy Department. Indications that supplies are more than ample to meet demand are also likely to weigh. Total U.S. natural gas storage stood at 1.512 trillion cubic feet as of last week, 46.9% above year-earlier levels and 13.0% below the five-year average for this time of year.
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