Investing.com – Natural gas futures jumped to a one-month high on Friday as forecasts for warmer-than-normal weather across most parts of the U.S. next week boosted demand expectations for the fuel.
On the New York Mercantile Exchange, natural gas futures for delivery in August settled at USD4.554 per million British thermal units by close of trade on Friday, soaring 7.05% over the week.
It earlier rose to USD4.559 per million British thermal units, the highest price since June 16.
Natural gas prices rallied nearly 3.6% on Friday, after the U.S. National Weather Service said that weather patterns indicated a "massive" heat wave would develop over the central and Eastern U.S. states next week.
The Commodity Weather Group said that it expected warmer-than-average temperatures for the middle third of the U.S. in the upcoming week, before extending to the East coast late next week.
The weather group forecast temperatures in the upper 90s and 100s for big East coast cities (32 to 37 Celsius) towards the end of July.
Natural gas traders monitor weather forecasts to determine whether temperatures may boost heating or cooling demand. Predictions of above-normal temperatures may prompt traders to buy or sell gas futures.
Prices dipped on Thursday after the U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. rose by 84 billion cubic feet last week, above expectations for an increase of 78 billion cubic feet.
Stockpiles advanced by 78 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a buildup of 88 billion cubic feet.
Total U.S. natural gas storage stood at 2.611 trillion cubic feet. Stocks were 218 billion cubic feet less than last year at this time and 52 billion cubic feet below the five-year average of 2.663 trillion cubic feet for this time of year.
Markets shrugged off data from industry research group Baker Hughes on Friday showing that the number of active rigs drilling for natural gas in the U.S. last week rose to 885 from 873, the highest amount in six weeks.
Elsewhere, light sweet crude oil futures for August delivery traded at USD97.72 a barrel by close of trade on Friday, advancing 1.6% over the week, while heating oil for August delivery climbing 1.25% on the week to trade at USD3.129 a gallon.
On the New York Mercantile Exchange, natural gas futures for delivery in August settled at USD4.554 per million British thermal units by close of trade on Friday, soaring 7.05% over the week.
It earlier rose to USD4.559 per million British thermal units, the highest price since June 16.
Natural gas prices rallied nearly 3.6% on Friday, after the U.S. National Weather Service said that weather patterns indicated a "massive" heat wave would develop over the central and Eastern U.S. states next week.
The Commodity Weather Group said that it expected warmer-than-average temperatures for the middle third of the U.S. in the upcoming week, before extending to the East coast late next week.
The weather group forecast temperatures in the upper 90s and 100s for big East coast cities (32 to 37 Celsius) towards the end of July.
Natural gas traders monitor weather forecasts to determine whether temperatures may boost heating or cooling demand. Predictions of above-normal temperatures may prompt traders to buy or sell gas futures.
Prices dipped on Thursday after the U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. rose by 84 billion cubic feet last week, above expectations for an increase of 78 billion cubic feet.
Stockpiles advanced by 78 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a buildup of 88 billion cubic feet.
Total U.S. natural gas storage stood at 2.611 trillion cubic feet. Stocks were 218 billion cubic feet less than last year at this time and 52 billion cubic feet below the five-year average of 2.663 trillion cubic feet for this time of year.
Markets shrugged off data from industry research group Baker Hughes on Friday showing that the number of active rigs drilling for natural gas in the U.S. last week rose to 885 from 873, the highest amount in six weeks.
Elsewhere, light sweet crude oil futures for August delivery traded at USD97.72 a barrel by close of trade on Friday, advancing 1.6% over the week, while heating oil for August delivery climbing 1.25% on the week to trade at USD3.129 a gallon.