Natural Gas Boosted Higher on Colder Weather Forecast and Potential Draw in U.S. Storage
U.S. natural gas futures gapped up on Monday, jumping to the highest level in more than two weeks thanks to cooler weather forecasts and expectations that U.S. natural gas storage will have drawn last week.
U.S. natural gas for April delivery soared more than 3 percent to as high as $2.925 per million British thermal units – the level not seen since February 17.
Updated weather forecast showed rain, snow, and cool temperatures will return to the northern and eastern U.S in the next one or two weeks. Cooler weather tends to boost demand for the heating fuel.
Meanwhile, economists expect U.S. weekly storage data due on Thursday will show a draw in a range between 53 and 64 billion cubic feet in the week ended March 3.
Buy Stop at 2.925, Take profit 2.990, Stop loss at 2.900