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Natural Gas Futures Top $4-Level for First Time Since 2014

Published 11/13/2018, 07:44 AM
© Reuters.  Natural Gas Futures Surge Again
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Investing.com - Natural gas futures surged again on Tuesday, extending a run of strong gains that has taken prices to their highest level since December 2014.

U.S. natural gas futures jumped 26.2 cents, or around 6.9%, to $4.050 per million British thermal units by 7:45AM ET (1245GMT), having earlier reached its best level since December 2014 at $4.063.

Futures have gained 23.7% so far this month as traders fretted over cold weather and tight supplies.

Updated weather forecasting models are now pointing to temperatures in mid-November that are more typical of the middle of December, with cold bursts expected in the Midwest, across Texas and the South and throughout New England.

Natural gas prices typically rise ahead of the winter as colder weather sparks indoor-heating demand.

The heating season from November through March is the peak demand period for U.S. gas consumption.

Meanwhile, market participants looked ahead to storage data for the week ending November 9, due out on Thursday.

Total natural gas in storage currently stands at 3.208 trillion cubic feet (tcf), according to the U.S. Energy Information Administration, the lowest level for this time of year in about 15 years.

The last time supplies were this low in the first week of November was in 2003.

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