Investing.com — U.S. futures rebounded, offsetting some of the significant losses suffered the day before. This recovery comes as most of the country continues to experience frigid weather this week. Traders are also closely watching the outlook for February.
Forecaster NatGasWeather.com noted a trend in the overnight data. The final days of January were slightly warmer, but the beginning of February is expected to be colder, measured in heating degree days (HDD). This change in temperature offsets the warmer trend.
Natural gas futures prices are expected to find support due to dwindling inventories. Cold temperatures in January are expected to turn the storage surplus, relative to the five-year average, into a deficit. This transformation is due to an increase in demand and a drop in production caused by frosts.
-As a result of these factors, next month’s Nymex futures contract rose 0.7%, with prices settling at $3.783 per mmBtu. The price rise reflects continued frigid weather conditions and the resulting pressure on natural gas stocks.
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