Natural gas continues to surge on cold weather, colder forecasts
Published Nov 13, 2012 03:54PM ET
Investing.com - Natural gas futures surged nearly 5% during U.S. afternoon trade Tuesday, as forecasts indicating colder-than-normal temperatures across most parts of the U.S. in the coming week boosted near-term demand expectations for the heating fuel.
Market players also looked ahead to a closely watched U.S. government report on natural gas supplies on Thursday, amid speculation the data could show the first withdrawal of the winter heating season.
On the New York Mercantile Exchange, natural gas futures for delivery in December traded at USD3.744 per million British thermal units during U.S. morning trade, rallying 4.83%.
Updated weather forecasts released earlier showed that cold weather was expected in most parts of the U.S. Southeast during the next five days.
Meanwhile, the Commodity Weather Group said earlier that temperatures may be colder-than-normal across most of the eastern half of the U.S. through November 17.
Bullish speculators are betting on the colder weather increasing early-winter demand for the heating fuel.
Natural gas prices drew additional support from expectations this Thursday’s storage data will show the first withdrawal of the U.S. heating season, in what would be the earliest seasonal decline since 2007.
The heating season from November through March is the peak demand period for U.S. gas consumption.
Early injection estimates range from a build of 15 billion cubic feet to a draw of 17 billion cubic feet, compared to last year's build of 20 billion cubic feet. The five-year average change for the week is an increase of 17 billion cubic feet.
Total U.S. gas supplies stood at 3.929 trillion cubic feet, an all-time record that surpasses the previous peak of 3.852 trillion cubic feet reached last November.
Stocks are 2.9% above a year ago and 6.6% above the five-year average for the week.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in January shed 0.25% to trade at USD85.88 a barrel, while heating oil for December delivery fell 1.1% to trade at USD2.966 per gallon.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.