Investing.com – Natural gas futures rallied to a three-day high on Tuesday, climbing above the psychologically important USD4.00-level as traders focused on storm activity in the Gulf of Mexico.
On the New York Mercantile Exchange, natural gas futures for October delivery traded at USD4.002 per million British thermal units during U.S. morning trade, rallying 3%.
It earlier rose as much as 3.1% to trade at USD4.018 per million British thermal units, the highest price since September 8.
The U.S. National Hurricane Center said in an advisory earlier that the 2011 Atlantic hurricane season “has turned out to be as active a season as was forecast”.
NHS spokesman Dennis Feltgen said that the 14 storms that have developed in thus far are in line with NHS projections for 19 named storms during the U.S. hurricane season, which runs from June 1 to November 30 and peaks in September and October.
“We are a little behind the curve on hurricanes, but right on target for being an active season, which is just as forecast.”
“We still have a lot of season to go because October is typically one of the most active months,” Mr. Feltgen added.
Production in federal waters in the Gulf accounts for about 10% of U.S. natural gas output and prices typically spike when storms threaten production.
Wall Street bank Citigroup said in a report earlier that natural gas prices could rally to USD4.50 per million British thermal units in the months ahead as traders focus on winter heating demand.
Natural gas futures often reach a seasonal low in October, when mild weather reduces demand, before recovering in the winter, when heating-fuel use peaks.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in October jumped 1.33% to trade at USD89.36 a barrel, while heating oil for October delivery shed 0.65% to trade at USD2.933 per gallon.
On the New York Mercantile Exchange, natural gas futures for October delivery traded at USD4.002 per million British thermal units during U.S. morning trade, rallying 3%.
It earlier rose as much as 3.1% to trade at USD4.018 per million British thermal units, the highest price since September 8.
The U.S. National Hurricane Center said in an advisory earlier that the 2011 Atlantic hurricane season “has turned out to be as active a season as was forecast”.
NHS spokesman Dennis Feltgen said that the 14 storms that have developed in thus far are in line with NHS projections for 19 named storms during the U.S. hurricane season, which runs from June 1 to November 30 and peaks in September and October.
“We are a little behind the curve on hurricanes, but right on target for being an active season, which is just as forecast.”
“We still have a lot of season to go because October is typically one of the most active months,” Mr. Feltgen added.
Production in federal waters in the Gulf accounts for about 10% of U.S. natural gas output and prices typically spike when storms threaten production.
Wall Street bank Citigroup said in a report earlier that natural gas prices could rally to USD4.50 per million British thermal units in the months ahead as traders focus on winter heating demand.
Natural gas futures often reach a seasonal low in October, when mild weather reduces demand, before recovering in the winter, when heating-fuel use peaks.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in October jumped 1.33% to trade at USD89.36 a barrel, while heating oil for October delivery shed 0.65% to trade at USD2.933 per gallon.