Investing.com – Natural gas futures were up on Monday, rebounding from a seven-day low after forecasts of extreme heat in the U.S. boosted demand expectations for the cooling fuel.
On the New York Mercantile Exchange, natural gas futures for September delivery traded at USD4.410 per million British thermal units during U.S. morning trade, climbing 1%.
It earlier rose as much as 1.3% to trade at a daily high of USD4.429 per million British thermal units.
The Commodity Weather Group said that temperatures were expected to near 100 degrees Fahrenheit and feel even hotter due to high humidity across the Eastern U.S. States in the coming week.
The weather group added that another heat event was expected in the Midwest by late next week.
According to weather service provider AccuWeather, the high temperature in New York on July 28 was expected to be 104 degrees Fahrenheit (38 Celsius), 19 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.
The largest New York-based power plant operator Consolidated Edison said that power use in New York reached a record high 13,189 megawatts on Sunday, breaking the previous record of 13,141 megawatts set in August 2006.
Power plants use 30% of U.S. gas supplies, according to the U.S. Energy Department.
Industry weather group MDA Federal said in a report earlier that, “People typically deal fairly well with one day of heat, but as the event continues, more and more people will turn up the air conditioner to cope.”
“As that demand increases, utilities will likely face increased demands to the already stressed grid,” the report added.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in September shed 0.55% to trade at USD99.21 a barrel, while heating oil for September delivery dipped 0.4% to trade at USD3.126 per gallon during U.S. morning trade.
On the New York Mercantile Exchange, natural gas futures for September delivery traded at USD4.410 per million British thermal units during U.S. morning trade, climbing 1%.
It earlier rose as much as 1.3% to trade at a daily high of USD4.429 per million British thermal units.
The Commodity Weather Group said that temperatures were expected to near 100 degrees Fahrenheit and feel even hotter due to high humidity across the Eastern U.S. States in the coming week.
The weather group added that another heat event was expected in the Midwest by late next week.
According to weather service provider AccuWeather, the high temperature in New York on July 28 was expected to be 104 degrees Fahrenheit (38 Celsius), 19 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.
The largest New York-based power plant operator Consolidated Edison said that power use in New York reached a record high 13,189 megawatts on Sunday, breaking the previous record of 13,141 megawatts set in August 2006.
Power plants use 30% of U.S. gas supplies, according to the U.S. Energy Department.
Industry weather group MDA Federal said in a report earlier that, “People typically deal fairly well with one day of heat, but as the event continues, more and more people will turn up the air conditioner to cope.”
“As that demand increases, utilities will likely face increased demands to the already stressed grid,” the report added.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in September shed 0.55% to trade at USD99.21 a barrel, while heating oil for September delivery dipped 0.4% to trade at USD3.126 per gallon during U.S. morning trade.