Investing.com – Natural gas futures extended sharp gains from the previous session on Monday, jumping to a three-week high after forecasts showed warmer-than-normal temperatures across much of the U.S., boosting demand expectations for the fuel.
On the New York Mercantile Exchange, natural gas futures for June delivery traded at USD4.354 per million British thermal units during U.S. morning trade, jumping 2.3%.
It earlier rose by as much as 3% to USD4.370 per million British thermal units, the highest price since May 5.
Industry weather group MDA Federal said that temperatures this week are expected to be warmer-than-normal from the Gulf Coast through the upper Midwest and parts of the Northeast, with warmth seen lingering through next weekend along the East Coast.
Meanwhile, the Commodity Weather Group said that next week “should be the warmest of the season so far for the East Coast cities as temperatures persistently reach the 80s. Combined with moderate humidity levels, it could feel like the 90s at times."
Prices were also boosted amid speculation declining U.S. natural gas production would widen a stockpile deficit.
Industry research group Baker Hughes said on Friday that the number of active rigs drilling for natural gas in the U.S. last week fell 0.9% to 866, the lowest level since January 2010.
Traders watch the rig count closely for signs that producers are pulling back to limit supply growth. The rig count is down 5.8% so far in 2011. According to the group, a drop to the 800-to-850 rig range would be necessary to begin to balance the market.
Elsewhere, light sweet crude oil futures for delivery in July plunged 2.9% to trade at USD97.03 a barrel, while heating oil for June delivery tumbled 2.58% to trade at USD2.841 per gallon during U.S. morning trade.
On the New York Mercantile Exchange, natural gas futures for June delivery traded at USD4.354 per million British thermal units during U.S. morning trade, jumping 2.3%.
It earlier rose by as much as 3% to USD4.370 per million British thermal units, the highest price since May 5.
Industry weather group MDA Federal said that temperatures this week are expected to be warmer-than-normal from the Gulf Coast through the upper Midwest and parts of the Northeast, with warmth seen lingering through next weekend along the East Coast.
Meanwhile, the Commodity Weather Group said that next week “should be the warmest of the season so far for the East Coast cities as temperatures persistently reach the 80s. Combined with moderate humidity levels, it could feel like the 90s at times."
Prices were also boosted amid speculation declining U.S. natural gas production would widen a stockpile deficit.
Industry research group Baker Hughes said on Friday that the number of active rigs drilling for natural gas in the U.S. last week fell 0.9% to 866, the lowest level since January 2010.
Traders watch the rig count closely for signs that producers are pulling back to limit supply growth. The rig count is down 5.8% so far in 2011. According to the group, a drop to the 800-to-850 rig range would be necessary to begin to balance the market.
Elsewhere, light sweet crude oil futures for delivery in July plunged 2.9% to trade at USD97.03 a barrel, while heating oil for June delivery tumbled 2.58% to trade at USD2.841 per gallon during U.S. morning trade.