Investing.com – Natural gas futures were up for a third day on Tuesday, jumping to a four-week high amid expectations for increased demand after forecasts showed warmer-than-normal temperatures across much of the U.S. next week.
On the New York Mercantile Exchange, natural gas futures for July delivery traded at USD4.626 per million British thermal units during U.S. morning trade, gaining 1.2%.
It earlier rose to USD4.644 per million British thermal units, the highest price since May 4.
The U.S. National Weather Service said earlier in the day that temperatures in the U.S. East, Midwest and South were forecast to be above normal from June 5 to June 9.
The Commodity Weather Group said over the weekend that temperatures in the East Coast through June 10 should be the warmest of the season so far.
According to weather service provider AccuWeather, the high temperature in New York on June 6 will be 86 degrees Fahrenheit (30 Celsius), 11 degrees above normal.
Hotter-than-normal weather increases the need for gas-fired electricity to cool homes, boosting demand for natural gas.
Meanwhile, the National Oceanic and Atmospheric Administration said that the 2011 Atlantic hurricane season was expected to produce above-average activity, with 12 to 18 named storms.
There is a 47% chance of a hurricane hitting the Gulf Coast during the 2011 storm season, according to the NOAA.
The Atlantic hurricane season starts June 1 and ends November 30. Production in federal waters in the Gulf of Mexico account for nearly 10% of natural gas output, and prices typically spike when storms threaten production.
Elsewhere, light sweet crude oil futures for delivery in July rallied 2.1% to trade at a three-week high of USD102.52 a barrel, while heating oil for July delivery climbed 1.47% to trade at USD3.041 per gallon during U.S. morning trade.
On the New York Mercantile Exchange, natural gas futures for July delivery traded at USD4.626 per million British thermal units during U.S. morning trade, gaining 1.2%.
It earlier rose to USD4.644 per million British thermal units, the highest price since May 4.
The U.S. National Weather Service said earlier in the day that temperatures in the U.S. East, Midwest and South were forecast to be above normal from June 5 to June 9.
The Commodity Weather Group said over the weekend that temperatures in the East Coast through June 10 should be the warmest of the season so far.
According to weather service provider AccuWeather, the high temperature in New York on June 6 will be 86 degrees Fahrenheit (30 Celsius), 11 degrees above normal.
Hotter-than-normal weather increases the need for gas-fired electricity to cool homes, boosting demand for natural gas.
Meanwhile, the National Oceanic and Atmospheric Administration said that the 2011 Atlantic hurricane season was expected to produce above-average activity, with 12 to 18 named storms.
There is a 47% chance of a hurricane hitting the Gulf Coast during the 2011 storm season, according to the NOAA.
The Atlantic hurricane season starts June 1 and ends November 30. Production in federal waters in the Gulf of Mexico account for nearly 10% of natural gas output, and prices typically spike when storms threaten production.
Elsewhere, light sweet crude oil futures for delivery in July rallied 2.1% to trade at a three-week high of USD102.52 a barrel, while heating oil for July delivery climbed 1.47% to trade at USD3.041 per gallon during U.S. morning trade.