Natural Gas contract for March delivery gained 2.97% to $4.965 at international market. The commodity rebounded from yesterday low of $4.78 on change in environment.
Heating fuel gains as weather is changing from mild to colder as winter storm is expected to come at Eastern U.S. There could be heavy snow fall that may lower the temperature below average and increase demand for energy source.
Today Energy Information Administration will release storage data at 1530 GMT. According to forecast the storage may shrink by 234 billion cubic feet, a little above previous fall. This will be the 13th sequential fall in Natural Gas storage and 3rd lowest of this year.
After data release we may see commodity trading near to $5.38 but it may retreat from the resistance of $5.4.
Natural Gas remains in high demand during the period of November to March. The present season is expected to be the coldest one since 1994. In this season Heating Fuel withdrawals were above five years average. In fact all energy commodities gained in last month on high demand for heating fuels. S&P GSCI Index for Energy commodities gained by 4.67% in one month.
We are expecting that Natural Gas may not make a new high in this season as winter days are near to end. High production at U.S. may drive commodity in surplus and drag down prices to the month low.