Natural gas futures rally to 6-week high in thin Labor Day trade
Investing.com
Published Sep 02, 2013 10:31AM ET
On the New York Mercantile Exchange, natural gas futures for delivery in October traded at USD3.675 per million British thermal units during U.S. morning trade, up 2.6%.
Prices rose by as much as 3% earlier in the session to hit a daily high of USD3.685 per million British thermal units, the strongest level since July 25. The October contract settled 1% lower at USD3.581 on Friday.
Trading volumes were expected to remain light on Monday, with U.S. markets closed for the Labor Day holiday. Regular trading on Nymex will resume on Tuesday following Monday’s Labor Day holiday.
Updated weather forecasting models pointed to warmer temperatures across most parts of the western half of the U.S. for the first week of September, boosting near-term demand expectations.
Forecasts originally called for cooler weather during the period.
Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use.
Meanwhile, U.S. supply levels also remained in focus. Total U.S. natural gas storage stood at 3.130 trillion cubic feet as of last week, 1.5% above the five-year average but still 7% below last year's level.
Early injection estimates for this week’s storage data range from 45 billion cubic feet to 53 billion cubic feet, compared to a 33 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 60 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in October shed 0.85% to trade at USD106.73 a barrel, while heating oil for October delivery was little changed to trade at USD3.137 per gallon.
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Written By: Investing.com
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