Investing.com – Natural gas futures edged higher on Wednesday, as forecasts showed warmer-than-normal weather was expected to return to most parts of the U.S. next week, but gains were limited as fears over a potential disruption to supplies in the Gulf of Mexico subsided.
On the New York Mercantile Exchange, natural gas futures for September delivery traded at USD4.165 per million British thermal units during U.S. morning trade, gaining 0.37%.
It earlier rose as much as 0.65% to trade at a daily high of USD4.179 per million British thermal units.
Industry weather group MDA Federal said earlier that it expected above average temperatures in the U.S. Northeast and Midwest states from August 7 to August 16.
According to weather service provider AccuWeather, the high temperature in Boston on August 8 will be 80 degrees Fahrenheit (30 Celsius), six degrees above normal.
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.
But gains were limited after the U.S. National Hurricane Center said earlier that Tropical Storm Emily, which has a high chance of strengthening to a hurricane in the next day or two, was moving westward in the Caribbean Sea, away from production platforms in the Gulf of Mexico.
Energy traders track tropical storm activity in the event it disrupts production in the Gulf of Mexico, which is home to 10% of U.S. natural gas production.
Meanwhile, markets were looking forward to the U.S. Energy Information Administration’s weekly report on U.S. natural gas stockpiles for the week ended July 29 on Thursday.
The report was expected to show that U.S. natural gas inventories increased by 39 billion cubic feet, after adding 43 billion cubic feet in the preceding week.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in September shed 0.45% to trade at a five-week low of USD92.83 a barrel, while heating oil for September delivery slumped 1.03% to trade at USD3.051 per gallon.
On the New York Mercantile Exchange, natural gas futures for September delivery traded at USD4.165 per million British thermal units during U.S. morning trade, gaining 0.37%.
It earlier rose as much as 0.65% to trade at a daily high of USD4.179 per million British thermal units.
Industry weather group MDA Federal said earlier that it expected above average temperatures in the U.S. Northeast and Midwest states from August 7 to August 16.
According to weather service provider AccuWeather, the high temperature in Boston on August 8 will be 80 degrees Fahrenheit (30 Celsius), six degrees above normal.
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.
But gains were limited after the U.S. National Hurricane Center said earlier that Tropical Storm Emily, which has a high chance of strengthening to a hurricane in the next day or two, was moving westward in the Caribbean Sea, away from production platforms in the Gulf of Mexico.
Energy traders track tropical storm activity in the event it disrupts production in the Gulf of Mexico, which is home to 10% of U.S. natural gas production.
Meanwhile, markets were looking forward to the U.S. Energy Information Administration’s weekly report on U.S. natural gas stockpiles for the week ended July 29 on Thursday.
The report was expected to show that U.S. natural gas inventories increased by 39 billion cubic feet, after adding 43 billion cubic feet in the preceding week.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in September shed 0.45% to trade at a five-week low of USD92.83 a barrel, while heating oil for September delivery slumped 1.03% to trade at USD3.051 per gallon.