Futures Pros – Natural gas futures were up on Wednesday, recouping some of the sharp losses suffered in the previous session, after forecasts showed warmer-than-normal weather in the U.S. next week, boosting demand expectations for the fuel.
On the New York Mercantile Exchange, natural gas futures for June delivery traded at USD4.221 per million British thermal units during U.S. morning trade, gaining 0.91%.
It earlier rose by as much as 1.4% to a daily high of USD4.240 per million British thermal units.
Industry weather group MDA Federal said earlier Wednesday that it expected above normal temperatures in the U.S. northeast and southern states from May 23 to May 27.
Weather service provider AccuWeather said that Boston was expected to have a high of 63 degrees Fahrenheit (17 Celsius) on May 21, five degrees below normal. The high in Chicago may be 73 degrees, matching the normal temperature.
Meanwhile, the National Oceanic and Atmospheric Administration is schedule to release both its June-August forecast for U.S. temperatures and its Atlantic hurricane season forecasts on Thursday.
Natural-gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting forecasts for late-May and June on cooling demand.
Markets were also looking forward to the U.S. Energy Information Administration’s weekly report on U.S. natural gas stockpiles for the week ended May 13 on Thursday.
The report was expected to show that U.S. natural gas inventories increased by 90 billion cubic feet, after adding 70 billion cubic feet in the preceding week.
Prices dropped nearly 3% on Tuesday after official data showed that U.S. industrial product unexpectedly stalled last month. Industrial consumers account for 28% of U.S. gas demand, according to the U.S. Energy Department.
Elsewhere, light sweet crude oil futures for delivery in July rallied 2.4% to trade at USD99.78 a barrel, while heating oil for June delivery rose 1.3% to trade at USD2.892 per gallon during U.S. morning trade.
On the New York Mercantile Exchange, natural gas futures for June delivery traded at USD4.221 per million British thermal units during U.S. morning trade, gaining 0.91%.
It earlier rose by as much as 1.4% to a daily high of USD4.240 per million British thermal units.
Industry weather group MDA Federal said earlier Wednesday that it expected above normal temperatures in the U.S. northeast and southern states from May 23 to May 27.
Weather service provider AccuWeather said that Boston was expected to have a high of 63 degrees Fahrenheit (17 Celsius) on May 21, five degrees below normal. The high in Chicago may be 73 degrees, matching the normal temperature.
Meanwhile, the National Oceanic and Atmospheric Administration is schedule to release both its June-August forecast for U.S. temperatures and its Atlantic hurricane season forecasts on Thursday.
Natural-gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting forecasts for late-May and June on cooling demand.
Markets were also looking forward to the U.S. Energy Information Administration’s weekly report on U.S. natural gas stockpiles for the week ended May 13 on Thursday.
The report was expected to show that U.S. natural gas inventories increased by 90 billion cubic feet, after adding 70 billion cubic feet in the preceding week.
Prices dropped nearly 3% on Tuesday after official data showed that U.S. industrial product unexpectedly stalled last month. Industrial consumers account for 28% of U.S. gas demand, according to the U.S. Energy Department.
Elsewhere, light sweet crude oil futures for delivery in July rallied 2.4% to trade at USD99.78 a barrel, while heating oil for June delivery rose 1.3% to trade at USD2.892 per gallon during U.S. morning trade.