Natural gas futures jump on warmer weather outlook
Investing.com
Published Jun 21, 2011 11:06AM ET
On the New York Mercantile Exchange, natural gas futures for July delivery traded at USD4.379 per million British thermal units during U.S. morning trade, jumping 1.75%.
It earlier rose as much as 2% to USD4.397 per million British thermal units, the highest price since June 17.
The Commodity Weather Group said earlier that it expected warmer-than-normal weather across most parts of the U.S. in the upcoming week.
Private forecaster MDA Federal also forecast above average temperatures, saying the weather “has finally taken a step in the warmer direction after largely trending cooler during the past week.”
Weather service provider AccuWeather said that New York was expected to have a high of 86 degrees Fahrenheit (30 Celsius) on June 22, five degrees above normal. The high in Atlanta was expected to reach 94 degrees (34 Celsius), seven degrees above average.
The ongoing heat should boost cooling demand in the U.S. Northeast, Southeast and South-Central regions. Industry group Weather Derivatives said that cooling demand in the U.S. was expected to be 10% above normal from June 23 to June 27.
Demand for the fuel tends to rise in the summer as warmer temperatures increase the need for gas-fired electricity to power air conditioning.
Elsewhere, light sweet crude oil futures for delivery in August edged 0.3% higher to trade at USD94.08 a barrel, while heating oil for July delivery fell 0.7% to trade at USD2.908 per gallon during U.S. morning trade.
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Written By: Investing.com
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