Investing.com — U.S. have seen a recovery, compensating for some of the significant losses experienced the previous day. This rebound is occurring as most of the country continues to experience freezing weather this week. Traders are also closely monitoring the outlook for February.
Forecaster NatGasWeather.com noted a trend in the overnight data. The last few days of January were slightly warmer, but the beginning of February is expected to be colder, measured in heating degree days (HDDs). This change in temperature is offsetting the warmer trend.
The prices of natural gas futures are anticipated to find support due to shrinking inventories. The cold January temperatures are expected to turn the storage surplus, compared to the five-year average, into a deficit. This transformation is due to an increase in demand and a decrease in production caused by freeze-offs.
As a result of these factors, the Nymex front month saw a 0.7% increase, with prices standing at $3.783 per mmBtu. The rise in prices reflects the ongoing freezing weather conditions and the resulting pressure on natural gas inventories.
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