Forex Pros – Natural gas futures were up for a second day on Monday, as forecasts showing warmer-than-normal weather in the southern U.S. states next week lifted demand expectations for the fuel.
On the New York Mercantile Exchange, natural gas futures for June delivery traded at USD4.276 per million British thermal units during European morning trade, edging 0.23% higher.
It earlier rose by as much as 0.4% to a daily high of USD4.287 per million British thermal units.
The Commodity Weather Group said that temperatures in the southern U.S. states were expected to be as much as 14 degrees above normal from May 13 to May 17.
The warm weather will spread along the U.S. east coast into New York and New England by the middle of the month, CWG forecasters said in a report published on Friday.
According to weather service provider AccuWeather, the high temperature in Houston on May 14 will be 91 degrees Fahrenheit (33 Celsius), ten degrees above average.
However, gains were limited amid concerns over rising U.S. supplies. Total U.S. natural gas storage stood at 1.757 trillion cubic feet in the week ended April 29, after a larger-than-expected buildup of 72 billion cubic feet.
Gas use typically hits a seasonal low with spring’s mild temperatures, before warmer weather increases demand for gas-fired electricity generation to power air conditioning.
Meanwhile, industry research group Baker Hughes said on Friday that the number of active rigs drilling for natural gas in the U.S. rose for the second consecutive week, climbing to 890 from 882.
According to the group, a drop to the 800-to-850 rig range would be necessary to begin to balance the market.
Elsewhere, light sweet crude oil futures for delivery in June surged 2.1% to trade at USD100.16 a barrel, while heating oil for June delivery jumped 1.93% to trade at USD2.922 per gallon during European morning trade.
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