Investing.com – Natural gas futures were up for a third day on Monday, climbing to a six-day high amid speculation declining U.S. natural gas production would widen a stockpile deficit.
On the New York Mercantile Exchange, natural gas futures for June delivery traded at USD4.306 per million British thermal units during U.S. morning trade, jumping 1.25%.
It earlier rose by as much as 1.5% to USD4.318 per million British thermal units, the highest price since May 6.
Industry research group Baker Hughes said on Friday that the number of active rigs drilling for natural gas in the U.S. last week fell 1.8% to 874, the lowest level since January 29, 2010.
The rig count is down 4.9% so far in 2011. According to the group, a drop to the 800-to-850 rig range would be necessary to begin to balance the market.
Global financial service provider Citigroup said in a report published earlier in the day that, “Falling rigs are an indicator that production taper will off in the long run.”
According to the U.S. Energy Information Administration, total U.S. natural gas stockpiles stood at 1.827 trillion cubic feet as of May 6, 2% below the five-year average and 12% below 2010 levels, the widest year-on-year deficit since the week ended August 1, 2008.
Meanwhile, industry weather group Weather Derivatives said that U.S. cooling demand from May 22 through May 26 was expected to be 44% above average, due to warmer weather expected in the southern U.S. states during that period.
Elsewhere, light sweet crude oil futures for delivery in June slipped 0.71% to trade at USD98.72 a barrel, while heating oil for June delivery fell 0.74% to trade at USD2.918 per gallon during U.S. morning trade.
On the New York Mercantile Exchange, natural gas futures for June delivery traded at USD4.306 per million British thermal units during U.S. morning trade, jumping 1.25%.
It earlier rose by as much as 1.5% to USD4.318 per million British thermal units, the highest price since May 6.
Industry research group Baker Hughes said on Friday that the number of active rigs drilling for natural gas in the U.S. last week fell 1.8% to 874, the lowest level since January 29, 2010.
The rig count is down 4.9% so far in 2011. According to the group, a drop to the 800-to-850 rig range would be necessary to begin to balance the market.
Global financial service provider Citigroup said in a report published earlier in the day that, “Falling rigs are an indicator that production taper will off in the long run.”
According to the U.S. Energy Information Administration, total U.S. natural gas stockpiles stood at 1.827 trillion cubic feet as of May 6, 2% below the five-year average and 12% below 2010 levels, the widest year-on-year deficit since the week ended August 1, 2008.
Meanwhile, industry weather group Weather Derivatives said that U.S. cooling demand from May 22 through May 26 was expected to be 44% above average, due to warmer weather expected in the southern U.S. states during that period.
Elsewhere, light sweet crude oil futures for delivery in June slipped 0.71% to trade at USD98.72 a barrel, while heating oil for June delivery fell 0.74% to trade at USD2.918 per gallon during U.S. morning trade.