US natural gas futures edged up on Wednesday on forecasts for slightly cooler, but still above-normal temperatures and higher heating demand over the next two weeks. Longer term, meteorologists predicted February would remain warmer than normal but now expect the weather in March to be near normal, which is cooler than earlier forecast.
After falling 16 percent in January on warmer forecasts, front-month gas futures for March delivery on the New York Mercantile Exchange rose 5.1 cents, or 1.6 percent, to settle at $3.168 per million British thermal units (mmBtu).
The cooler forecasts also boosted next-day gas at the Henry Hub to $3.12 per mmBtu from $3 on Tuesday, its lowest level since late November.
So far, the November-through-March period is on track to be slightly colder than last year's record warm winter but hotter than the 10- and 30-year averages.
Heating degree days have totaled 1,976 so far this season, versus 1,908 during the same period last winter, a 30-year average of 2,214 and a 10-year average of 2,152, according to Thomson Reuters data.
US gas demand will rise to 100.9 billion cubic feet per day (bcfd) this week before easing to 99.1 bcfd next week from 90.6 bcfd during the warmer-than-normal weather last week, Thomson Reuters projected.
Analysts said utilities likely pulled about 88 billion cubic feet of gas from storage during the week ended January 27, the least for that week since 2006.
That compared with withdrawals of 169 bcf a year earlier and the five-year average of 166 bcf for that week.