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Natural gas extends rally on forecasts for warmer temperatures

Published 05/21/2013, 01:45 PM
Updated 05/21/2013, 01:46 PM
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Investing.com - Natural gas prices extended Monday's gains into Tuesday after weather reports continue to call for hotter temperatures settling in for the heavily populated central and eastern swathes of the U.S.

On the New York Mercantile Exchange, natural gas futures for delivery in June traded at USD4.191 per million British thermal units, up 2.47%.

The commodity hit a session low of USD4.080 and a high of USD4.197.

Above-normal temperatures forecast to hover over much of the U.S. in the next several days sent natural gas prices rising on sentiment the nation's thermal power plants will hike demand as households and businesses crank up their air conditioners.

The U.S. National Weather Service issued earlier a six-to-ten-day forecast calling for above-normal temperatures for the eastern two thirds of the nation.

Investors kept a cautious eye towards Thursday's weekly inventory data.

The U.S. Energy Information Administration said last week that natural gas storage in the U.S. rose by 99 billion cubic feet, above expectations for an increase of 95 billion cubic feet.

Total U.S. natural gas storage stood at 1.865 trillion cubic feet as of last week, 5% below the five-year average for this time of year.

Early injection estimates for this week’s storage data range from 87 billion cubic feet to 100 billion cubic feet, compared to a 75 billion cubic feet increase during the same week a year earlier.

The five-year average for the week is a build of 90 billion cubic feet.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in July were down 0.61% and trading at USD96.34 a barrel, while heating oil futures for June delivery were down 0.59% at USD2.9335 per gallon.





 

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