Investing.com – Last week saw natural gas prices surge to a three-week high on Friday after forecasts showed warmer-than-normal temperatures across much of the U.S. next week, boosting demand expectations for the fuel.
On the New York Mercantile Exchange, natural gas futures for delivery in July settled at USD4.524 per million British thermal units by close of trade on Friday, rallying 6.3% over the week.
It earlier rose to USD4.561 per million British thermal units, the highest price since May 5.
Natural gas prices jumped 3.4% on Friday after the Commodity Weather Group said that next week “should be the warmest of the season so far” for East Coast cities, as temperatures persistently reach the 80s. “Combined with moderate humidity levels, it could feel like the 90s at times."
The weather group added that it expected warmer-than-usual weather in the U.S. Midwest and Great Lakes regions through June 9, while temperatures in Texas and parts of the Southeast may be up to 14 degrees above normal during the period.
Industry weather group Weather Derivatives said that U.S. cooling demand from June 2 through June 6 was expected to be 7% above normal. Hotter-than-normal weather increases the need for gas-fired electricity to cool homes, boosting demand for natural gas.
Prices were also supported as buyers re-entered the market on short-covering ahead of the long Memorial Day holiday weekend.
Also Friday, industry research group Baker Hughes said that the number of active rigs drilling for natural gas in the U.S. last week rose 1.7% to 881. Gas rigs climbed for the first time in three weeks, but remain 11% below the 2010 peak of 992.
Natural gas futures slumped on Thursday after the U.S. Energy Information Administration said natural gas inventories rose by 105 billion cubic feet last week, surpassing expectations for a buildup of 93 billion cubic feet.
Total U.S. natural gas stockpiles stood at 2.024 trillion cubic feet. Supplies were 1.3% below the five-year average, narrowing from a deficit of 1.8% the previous week. The year-on-year deficit narrowed to 10% from 11% a week earlier.
Elsewhere, light sweet crude oil futures for July delivery traded at USD100.74 a barrel by close of trade on Friday, rising 1.1% over the week, while heating oil for July delivery traded at USD2.999 a gallon, jumping 3.05% over the week.
On the New York Mercantile Exchange, natural gas futures for delivery in July settled at USD4.524 per million British thermal units by close of trade on Friday, rallying 6.3% over the week.
It earlier rose to USD4.561 per million British thermal units, the highest price since May 5.
Natural gas prices jumped 3.4% on Friday after the Commodity Weather Group said that next week “should be the warmest of the season so far” for East Coast cities, as temperatures persistently reach the 80s. “Combined with moderate humidity levels, it could feel like the 90s at times."
The weather group added that it expected warmer-than-usual weather in the U.S. Midwest and Great Lakes regions through June 9, while temperatures in Texas and parts of the Southeast may be up to 14 degrees above normal during the period.
Industry weather group Weather Derivatives said that U.S. cooling demand from June 2 through June 6 was expected to be 7% above normal. Hotter-than-normal weather increases the need for gas-fired electricity to cool homes, boosting demand for natural gas.
Prices were also supported as buyers re-entered the market on short-covering ahead of the long Memorial Day holiday weekend.
Also Friday, industry research group Baker Hughes said that the number of active rigs drilling for natural gas in the U.S. last week rose 1.7% to 881. Gas rigs climbed for the first time in three weeks, but remain 11% below the 2010 peak of 992.
Natural gas futures slumped on Thursday after the U.S. Energy Information Administration said natural gas inventories rose by 105 billion cubic feet last week, surpassing expectations for a buildup of 93 billion cubic feet.
Total U.S. natural gas stockpiles stood at 2.024 trillion cubic feet. Supplies were 1.3% below the five-year average, narrowing from a deficit of 1.8% the previous week. The year-on-year deficit narrowed to 10% from 11% a week earlier.
Elsewhere, light sweet crude oil futures for July delivery traded at USD100.74 a barrel by close of trade on Friday, rising 1.1% over the week, while heating oil for July delivery traded at USD2.999 a gallon, jumping 3.05% over the week.