The wintry projections also prompted traders to close out bets on lower prices, or a move known as short-covering, which further supported prices, according to Investing.
The natural gas market has plunged from highs of above $3.3 per mmBtu in October. Gas futures typically hit a seasonal low in October when mild weather pressures demand before recovering in winter. However, a mild start to the winter heating season exacerbated concerns over a growing supply glut.
Looking ahead, market observers anticipate an inventory build of 21 and 30 billion cubic feet in the week ended November 11, compared to the five-year average build of 3 bcf for the same period.
Total natural gas inventories stood at an all-time high of 4.017 trillion cubic feet, or 1.2% higher than levels at this time last year and 4.7% above the five-year average for this period of the year.
For more information on the natural gas market, visit our natural gas category.
United States Natural Gas Fund