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Natural gas gains as forecasts point to warmer temperatures

Published 05/15/2013, 03:21 PM
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Investing.com - Natural gas prices rose on Wednesday after weather forecasts indicated that a cool snap hovering over the East Coast will give way to hotter temperatures and hike the need for air conditioning in the nation's households and businesses.

On the New York Mercantile Exchange, natural gas futures for delivery in June traded at
USD4.069 per million British thermal units, up 1.11%.

The commodity hit a session low of USD4.011 and a high of USD4.077.

Hotter weather in the southwestern U.S. has ramped up demand for air conditioning, and rising temperatures predicted for the eastern half of the country should follow suit, which sent natural gas futures rising on Wednesday.

Commodity Weather Group LLC, for example, predicted a warming trend for the central and mid-Atlantic states to bring temperatures above normal for this time of year through May 20.
Investors also spent the day waiting for official supply data due out Thursday.

Early injection estimates for this week’s storage data range from 87 billion cubic feet to 108 billion cubic feet, compared to a more modest 56 billion cubic feet increase during the same week a year earlier.

The five-year average for the week is a build of 83 billion cubic feet.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in June were up 0.05% and trading at USD94.25 a barrel, while heating oil futures for June delivery were up 0.05% at USD2.8746 per gallon.









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