The NYMEX May natural gas futures contract settled 5.8 cents higher at $4.534/MMBtu Tuesday on a supportive weather outlook across much of the US over the middle of April.
"Some models are predicting temperatures 20 degrees below normal in an area from Texas to the Florida Panhandle and as far north as the Great Lakes," said analysts with Gelber & Associates in a report. "After the cold air from Canada floods the United States, a mass of air is expected to settle over the West Coast, limiting whatever warm air that would normally follow."
Still, the firm noted that the market's upside has been muted, as many traders may be taking a wait-and-see approach as they gauge just how cold the weather may be.
The state of storage and the pace of injections going forward also weighed upon traders' minds, sources said.
"Even though we're looking for a bigger-than-average injection (into storage this week) ... when you have storage levels at 822 Bcf, there's cause for nervousness," said TFS Energy Futures broker Gene McGillian. The contract traded between $4.456-$4.552/MMBtu.
The NYMEX settlement is considered preliminary and subject to change until a final settlement price is posted at 7 pm EDT (2300 GMT).
