Natural gas futures higher on Midwest heat forecasts
Investing.com
Published Sep 09, 2013 10:35AM ET
Market participants also monitored tropical storm activity in the Gulf of Mexico, amid concerns over a disruption to supplies from the region.
On the New York Mercantile Exchange, natural gas futures for delivery in October traded at USD3.565 per million British thermal units during U.S. morning trade, up 1%.
The October contract settled 1.25% lower on Friday at USD3.530 per million British thermal units, the weakest level since August 29.
Prices traded in a range between USD3.532, the daily low and a session high of USD3.591 per million British thermal units.
Updated weather forecasting models pointed to warmer-than-normal temperatures across most parts of the U.S. Midwest through mid-September, boosting near-term demand expectations.
Natural gas traders monitor weather forecasts to determine whether temperatures may boost heating or cooling demand.
Prices found additional support after the U.S. National Hurricane Center said Tropical Storm Humberto could become a hurricane by Wednesday.
Energy traders track tropical storm activity in the event it disrupts production in the Gulf of Mexico, which is home to 10% of U.S. natural gas production.
Meanwhile, U.S. supply levels also remained in focus. Total U.S. natural gas storage stood at 3.188 trillion cubic feet as of last week, 1.4% above the five-year average and 6.2% below last year's unusually high level.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in October fell 0.85% to trade at USD109.58 a barrel, while heating oil for October delivery declined 0.9% to trade at USD3.135 per gallon.
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Written By: Investing.com
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