Investing.com – Natural gas futures were up for a fourth day on Wednesday, trading at a nine-day high amid a favorable demand outlook after weather forecasts showed that a heat wave was moving towards the U.S. East coast.
On the New York Mercantile Exchange, natural gas futures for August delivery traded at USD4.386 per million British thermal units during U.S. morning trade, jumping 1.42%.
It earlier rose as much as 1.8% to trade at USD4.410 per million British thermal units, the highest price since June 30.
Industry weather group MDA Federal said earlier that it expected warmer-than-normal temperatures across the U.S. Midwest and East coast from July 21 to July 25.
According to weather service provider AccuWeather, temperatures were expected to be above 100 degrees Fahrenheit (38 Celsius) across large parts of Missouri, Kansas, Oklahoma and Louisiana throughout the next five days.
Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning.
Meanwhile, in its monthly Short-Term Energy Outlook published Tuesday, the U.S. Energy Department said that total U.S. gas consumption was forecast to rise by 2% in 2011 to 67.4 billion cubic feet a day, amid increased demand from industrial and electric power consumers.
U.S. natural gas production was projected to average 65.4 billon cubic feet per day in 2011, up 5.8% from a year earlier.
Markets were looking forward to the EIA’s weekly report on natural gas stockpiles for the week ended July 8 on Thursday.
The report was expected to show that U.S. natural gas inventories increased by 78 billion cubic feet last week, after adding 95 billion cubic feet in the preceding week.
Stockpiles climbed 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.
Elsewhere, light sweet crude oil futures for delivery in August rose 0.3% to trade at USD97.17 a barrel, while heating oil for August delivery gained 1.1% to trade at USD3.107 per gallon during U.S. morning trade.
On the New York Mercantile Exchange, natural gas futures for August delivery traded at USD4.386 per million British thermal units during U.S. morning trade, jumping 1.42%.
It earlier rose as much as 1.8% to trade at USD4.410 per million British thermal units, the highest price since June 30.
Industry weather group MDA Federal said earlier that it expected warmer-than-normal temperatures across the U.S. Midwest and East coast from July 21 to July 25.
According to weather service provider AccuWeather, temperatures were expected to be above 100 degrees Fahrenheit (38 Celsius) across large parts of Missouri, Kansas, Oklahoma and Louisiana throughout the next five days.
Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning.
Meanwhile, in its monthly Short-Term Energy Outlook published Tuesday, the U.S. Energy Department said that total U.S. gas consumption was forecast to rise by 2% in 2011 to 67.4 billion cubic feet a day, amid increased demand from industrial and electric power consumers.
U.S. natural gas production was projected to average 65.4 billon cubic feet per day in 2011, up 5.8% from a year earlier.
Markets were looking forward to the EIA’s weekly report on natural gas stockpiles for the week ended July 8 on Thursday.
The report was expected to show that U.S. natural gas inventories increased by 78 billion cubic feet last week, after adding 95 billion cubic feet in the preceding week.
Stockpiles climbed 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.
Elsewhere, light sweet crude oil futures for delivery in August rose 0.3% to trade at USD97.17 a barrel, while heating oil for August delivery gained 1.1% to trade at USD3.107 per gallon during U.S. morning trade.