MTECHTIPS:-Natural gas futures inch higher as snow threatens eastern U.S.
MTECHTIPS:-Natural gas futures inch higher as snow threatens eastern U.S.
U.S. natural gas futures inched higher on Wednesday, as market participants looked ahead to the first major winter storm that is expected to impact the eastern U.S. as soon as Friday. A storm will intensify across the southern United States late in the week, bringing snow, ice, rain and the potential for severe weather. This storm is then expected to track northeastward along the East Coast and bring a significant snowstorm to the mid-Atlantic states and New England, according to weather service provider AccuWeather. for delivery in February on the New York Mercantile Exchange tacked on 2.1 cents, or 0.98%, to trade at $2.111 per million British thermal units by 14:30 GMT, or 9:30AM ET. Gains were limited as updated weather forecasting models for the end of January turned milder. Forecasts originally pointed to freezing temperatures in the U.S. east coast until the end of the month. Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting outlooks on winter heating demand. The heating season from November through March is the peak demand period for U.S. gas consumption. Meanwhile, market participants looked ahead to fresh weekly information on U.S. gas inventories to gauge the strength of demand for the fuel. The U.S. Energy Information Administration's next slated for release on Thursday is expected to show a withdrawal of approximately 150 billion cubic feet for the week ending January 15. That compares with draws of 168 billion cubic feet in the prior week and a five-year average of 160 billion.
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