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Natural gas re-approaches 3-week high on warm weather forecast

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Forex Pros - Natural gas futures were up on Wednesday, re-approaching a three-week high amid indications of increased demand after forecasts showed warmer-than-normal weather in key regions in the U.S. next week.

On the New York Mercantile Exchange, natural gas futures for June delivery traded at USD4.409 per million British thermal units during U.S. morning trade, gaining 0.42%.

It earlier rose by as much as 1% to a daily high of USD4.428 per million British thermal units.

The Commodity Weather Group said that temperatures in the U.S. East and Midwest are expected to be warmer-than-normal through June 8.

The weather group added that next week "should be the warmest of the season so far for the East Coast cities as temperatures persistently reach the 80s. Combined with moderate humidity levels, it could feel like the 90s at times."

Meanwhile, the National Oceanic and Atmospheric Administration predicted on Tuesday that that 12 to 18 named storms, with winds of 39 miles per hour (63 kilometers per hour) or higher, would form during the six-month Atlantic hurricane season. Of those storms, six to 10 may become hurricanes with winds of at least 74 mph.

The average Atlantic hurricane season produces 11 named storms, according to the hurricane center.

Markets were looking forward to the U.S. Energy Information Administration's weekly report on U.S. natural gas stockpiles for the week ended May 20 on Thursday.

The report was expected to show that U.S. natural gas inventories increased by 93 billion cubic feet, after adding 92 billion cubic feet in the preceding week.

Supplies climbed by 100 billion cubic feet in the same week a year earlier. The five-year average change for the week is an increase of 95 billion cubic feet.

Elsewhere, light sweet crude oil futures for delivery in July eased up 0.09% to trade at USD99.62 a barrel, while heating oil for July delivery jumped 1.2% to trade at USD2.957 per gallon during U.S. morning trade.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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