Natural gas gains on forecasts for hot temps in West, chilly Northeast


Shutterstock photo - Natural gas prices rose on Monday after weather forecasting models called for rising temperatures in the western U.S. and falling temperatures in the northeastern portions of the country.

On the New York Mercantile Exchange, natural gas futures for delivery in June traded at USD3.943 per million British thermal units, up 0.86%.

The commodity hit a session low of USD3.886 and a high of USD3.977.

Hot weather in the southwestern U.S. should ramp up demand for air conditioning, while colder-than-normal temperatures settling in for the heavily populated northeastern U.S. should prompt businesses and households to crank up the heat.

Both weather patterns allow naturals gas prices to rise and offset bearish supply data released late last week.

On Thursday, the U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended May 3 rose by 88 billion cubic feet, above expectations for an increase of 83 billion cubic feet.

Inventories rose by 30 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a rise of 69 billion cubic feet.

Total U.S. natural gas storage stood at 1.865 trillion cubic feet as of last week. Stocks were 737 billion cubic feet less than last year at this time and 99 billion cubic feet below the five-year average of 1.964 trillion cubic feet for this time of year.

The report showed that in the East Region, stocks were 109 billion cubic feet below the five-year average, following net injections of 52 billion cubic feet.

Stocks in the Producing Region were 40 billion cubic feet below the five-year average of 805 billion cubic feet after a net injection of 31 billion cubic feet.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in June were down 0.93% and trading at USD95.15 a barrel, while heating oil futures for June delivery were down 0.22% at USD2.8998 per gallon. - offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.
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This article appears in: Investing , Forex and Currencies

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