Natural gas prices extend gains on stockpiles data, weather forecasts

Investing.com - Natural gas prices rose on Friday as investors applauded bullish supply data released on Thursday as well as chilly forecasts.On the New York Mercantile Exchange, natural gas futures for delivery in January traded at USD4.169 per million British thermal units during U.S. trading, up 0.88%. The commodity hit a session low of USD4.123 and a high of USD4.200.The January contract settled up 4.43% at USD4.132 per million British thermal units on Thursday.Futures were likely to find support at USD3.951 per million British thermal units, Thursday's low, and resistance at USD4.229, the high from May 29.Cold weather gripping much of the nation will encompass more of the heavily populated eastern U.S. in the coming days, according to updated weather forecasting models, which boosted natural gas futures.Colder temperatures hike the need for heating this time of year, thus increasing demand for natural gas at the nation's thermal power generators.A fresh blast of arctic air will come sweeping down afterwards and make any warming trends short lived.Natgasweather.com reported in its 8-14 day outlook that colder air will stay in place through Dec. 16, but a return to normal temperatures could take place around Dec. 20.Bullish supply data released Thursday supported prices as well.The U.S. Energy Information Administration reported that total U.S. gas inventories fell last week by 162 billion cubic feet to 3.614 trillion cubic feet, well above consensus forecasts for a drop of 138 billion cubic feet.In the week before last, natural gas in storage fell by 13 billion cubic feet compared to expectations for a withdrawal of 10 billion cubic feet.Stocks fell 62 billion cubic feet during the same week a year earlier.Elsewhere on the NYMEX, light sweet crude oil futures for delivery in January were up 0.08% and trading at USD97.46 a barrel, while heating oil for January delivery were up 0.01% and trading at USD3.0499 per gallon.