Investing.com – Natural gas futures were up on Tuesday, climbing to a three-day high amid increased demand expectations after weather forecasts showed that warmer-than-normal weather was forecast to return to the U.S. next week.
On the New York Mercantile Exchange, natural gas futures for September delivery traded at USD4.003 per million British thermal units during U.S. morning trade, gaining 0.98%.
It earlier rose as much as 1.24% to trade at USD4.013 per million British thermal units, the highest price since August 4.
Industry weather group MDA Federal said earlier that it expected above-normal temperatures to return to the U.S. East Coast and Midwest states next week.
The weather group’s 11-to-15-day forecast showed that while seasonally-normal weather was expected in the upcoming week, warmer temperatures will return to the East Coast towards the second week of August.
Natural gas traders monitor weather forecasts to determine whether temperatures may boost heating or cooling demand.
Predictions of below-average or above-average temperatures may prompt traders to buy or sell gas futures.
Meanwhile, the U.S. Energy Information Administration was to release its Short-Term Energy Outlook later in the day, with projections on production and consumption likely to move markets.
Concerns over rising production levels have been one of the factors suppressing prices recently.
Industry research group Baker Hughes said on Friday that the number of active rigs drilling for natural gas in the U.S. last week rose to 883 from 877, the third gain in four weeks.
Natural gas traders closely watch the rig count to gauge future supply growth. A drop to the 800-rig-level would be necessary to begin to balance the market, according to Baker Hughes.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in September climbed 1.3% to trade at USD81.94 a barrel, while heating oil for September delivery eased up 0.1% to trade at USD2.819 per gallon.
On the New York Mercantile Exchange, natural gas futures for September delivery traded at USD4.003 per million British thermal units during U.S. morning trade, gaining 0.98%.
It earlier rose as much as 1.24% to trade at USD4.013 per million British thermal units, the highest price since August 4.
Industry weather group MDA Federal said earlier that it expected above-normal temperatures to return to the U.S. East Coast and Midwest states next week.
The weather group’s 11-to-15-day forecast showed that while seasonally-normal weather was expected in the upcoming week, warmer temperatures will return to the East Coast towards the second week of August.
Natural gas traders monitor weather forecasts to determine whether temperatures may boost heating or cooling demand.
Predictions of below-average or above-average temperatures may prompt traders to buy or sell gas futures.
Meanwhile, the U.S. Energy Information Administration was to release its Short-Term Energy Outlook later in the day, with projections on production and consumption likely to move markets.
Concerns over rising production levels have been one of the factors suppressing prices recently.
Industry research group Baker Hughes said on Friday that the number of active rigs drilling for natural gas in the U.S. last week rose to 883 from 877, the third gain in four weeks.
Natural gas traders closely watch the rig count to gauge future supply growth. A drop to the 800-rig-level would be necessary to begin to balance the market, according to Baker Hughes.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in September climbed 1.3% to trade at USD81.94 a barrel, while heating oil for September delivery eased up 0.1% to trade at USD2.819 per gallon.