Investing.com – Natural gas futures were up for a third day on Wednesday, climbing above the psychologically important USD4 level as weather forecasts showed that warmer-than-normal weather was forecast to return to the U.S. next week, boosting demand expectations for the fuel.
On the New York Mercantile Exchange, natural gas futures for September delivery traded at USD4.069 per million British thermal units during U.S. morning trade, climbing 1.14%.
It earlier rose as much as 1.3% to trade at USD4.074 per million British thermal units, the highest price since August 4.
The Commodity Weather Group said earlier that hot weather was forecast for the Southern U.S. states towards the end of the week, while adding that it expected above-normal temperatures to return to the U.S. East Coast and Midwest states next week.
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.
Meanwhile, the U.S. Energy Information Administration said in its Short-Term energy Outlook published Tuesday that industrial demand for natural gas was expected to increase 1.7% in 2011.
Markets were looking forward to the U.S. Energy Information Administration’s weekly report on U.S. natural gas stockpiles for the week ended August 5 on Thursday.
The report was expected to show that U.S. natural gas inventories increased by 33 billion cubic feet, after adding 44 billion cubic feet in the preceding week.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in September sank 1.3% to trade at USD80.22 a barrel, while heating oil for September delivery added 0.12% to trade at USD2.818 per gallon.
On the New York Mercantile Exchange, natural gas futures for September delivery traded at USD4.069 per million British thermal units during U.S. morning trade, climbing 1.14%.
It earlier rose as much as 1.3% to trade at USD4.074 per million British thermal units, the highest price since August 4.
The Commodity Weather Group said earlier that hot weather was forecast for the Southern U.S. states towards the end of the week, while adding that it expected above-normal temperatures to return to the U.S. East Coast and Midwest states next week.
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.
Meanwhile, the U.S. Energy Information Administration said in its Short-Term energy Outlook published Tuesday that industrial demand for natural gas was expected to increase 1.7% in 2011.
Markets were looking forward to the U.S. Energy Information Administration’s weekly report on U.S. natural gas stockpiles for the week ended August 5 on Thursday.
The report was expected to show that U.S. natural gas inventories increased by 33 billion cubic feet, after adding 44 billion cubic feet in the preceding week.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in September sank 1.3% to trade at USD80.22 a barrel, while heating oil for September delivery added 0.12% to trade at USD2.818 per gallon.