09:20 AM EST, 11/29/2024 (MT Newswires) -- Natural gas traded higher early on Friday as cold weather in eastern markets increases heating demand.

Gas for January delivery was last seen up US$0.12 to US$3.32 per million British thermal units.

The rise comes as long-term forecasts from the National Weather Service see colder than seasonal temperatures continuing for states east of the Mississippi River over the next two weeks. The cold is likely to boost demand, cutting into swollen inventories following a mostly warm November for big eastern markets that has kept inventories higher than the five-year average.

The Energy Information Administration on Wednesday reported inventories last week fell by two-billion cubic feet per day, well under the 30-bcf average drop for the week, leaving inventories 7.2% above average the five-year average.

"The recent batch of weather forecasts indicating colder temperature in the coming days keeps natural gas prices pushing higher heading into winter and trim the 270 Bcf surplus," RBC Capital Markets noted.