Investing.com - Natural gas futures fell to a two-week low on Wednesday, amid concerns that the arrival of spring will bring warmer temperatures throughout the U.S. and cut into demand for heating.
On the New York Mercantile Exchange, natural gas futures for delivery in April fell to a session low of $4.448 per million British thermal units, the weakest since February 27.
Natural gas last traded at $4.517 per million British thermal units during U.S. morning hours, down 1.9%, or 8.8 cents.
The April contract lost 0.99%, or 4.6 cents, on Tuesday to settle at $4.605 per million British thermal units.
Futures were likely to find support at $4.447 per million British thermal units, the low from February 27 and resistance at $4.683, the high from March 11.
Natural gas prices came under pressure after updated weather-forecasting models called for above-normal temperatures across many densely populated areas in the U.S. in the next three to five days.
Spring and fall see the weakest demand for natural gas in the U.S, as the absence of extreme temperatures curbs demand for heating and air conditioning.
The heating season from November through March is the peak demand period for U.S. gas consumption. Approximately 52% of U.S. households use natural gas for heating, according to the Energy Department.
Total U.S. natural gas storage stood at 1.196 trillion cubic feet as of last week, the lowest for this time of year since 2004, following a withdrawal of 152 billion cubic feet.
Natural gas rallied to a more than five-year high of $6.493 per million British thermal units on February 20 as frigid winter temperatures in the U.S. led households to burn a higher than normal amount of the fuel in furnaces to heat their homes.
Approximately 52% of U.S. households use natural gas for heating, according to the Energy Department.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in April plunged 2.1%, or $2.07, to trade at $97.96 a barrel, while heating oil for April delivery slumped 0.8% to trade at $2.936 per gallon.