Investing.com – Natural gas futures edged higher on Tuesday, 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 October delivery traded at USD3.871 per million British thermal units during U.S. morning trade, gaining 0.33%.
It earlier rose as much as 1.83% to trade at USD3.930 per million British thermal units, the highest price since September 2.
Industry weather group MDA Federal said in a report earlier that it expected above average temperatures in Texas and other southern states through the second week of September.
The weather forecaster added that the U.S. Pacific Northwest should continue to see “intense heat” over the next few days.
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.
But gains were limited after the U.S. National Hurricane Center said earlier that Hurricane Katia was moving westward in the Caribbean Sea, away from production platforms in the Gulf of Mexico.
The U.S. Bureau of Ocean Energy Management said earlier that nearly 46% of natural gas production in the Gulf has been shut in as of Monday. That amounts to about 2.44 billion cubic feet of production per day.
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.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in October tumbled 2.2% to trade at a seven-day low of USD84.55 a barrel, while heating oil for October delivery slumped 0.46% to trade at USD2.983 per gallon.
Nymex floor trading was shut on Monday for the Labor Day holiday and electronic trades will be booked with today’s transactions for settlement purposes.
On the New York Mercantile Exchange, natural gas futures for October delivery traded at USD3.871 per million British thermal units during U.S. morning trade, gaining 0.33%.
It earlier rose as much as 1.83% to trade at USD3.930 per million British thermal units, the highest price since September 2.
Industry weather group MDA Federal said in a report earlier that it expected above average temperatures in Texas and other southern states through the second week of September.
The weather forecaster added that the U.S. Pacific Northwest should continue to see “intense heat” over the next few days.
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.
But gains were limited after the U.S. National Hurricane Center said earlier that Hurricane Katia was moving westward in the Caribbean Sea, away from production platforms in the Gulf of Mexico.
The U.S. Bureau of Ocean Energy Management said earlier that nearly 46% of natural gas production in the Gulf has been shut in as of Monday. That amounts to about 2.44 billion cubic feet of production per day.
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.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in October tumbled 2.2% to trade at a seven-day low of USD84.55 a barrel, while heating oil for October delivery slumped 0.46% to trade at USD2.983 per gallon.
Nymex floor trading was shut on Monday for the Labor Day holiday and electronic trades will be booked with today’s transactions for settlement purposes.