Investing.com – Natural gas futures were up sharply on Wednesday, rallying to a six-day high as mounting fears over a disruption to U.S. supplies in the Gulf of Mexico boosted prices.
On the New York Mercantile Exchange, natural gas futures for October delivery traded at USD3.996 per million British thermal units during U.S. morning trade, surging 2.04%.
It earlier rose as much as 2.3% to trade at USD4.011 per million British thermal units, the highest price since August 23.
The U.S. National Hurricane Center said earlier that Tropical Storm Katia strengthened over the Atlantic Ocean overnight, raising its maximum winds to approximately 70 miles per hour.
The storm, which is located about 885 miles west of Cape Verde, has a good chance to of becoming a hurricane by late Wednesday. A tropical storm becomes a hurricane when its winds reach 74 miles per hour.
"Katia continues to look more impressive on satellite images and steady strengthening appears to be likely," the NHS said in an earlier advisory.
The NHS added that another storm system located near the northwestern Caribbean Sea has a 10% chance of becoming a cyclone in the next 48 hours, and could move into the western Gulf of Mexico.
Energy traders track tropical storm activity in the event it disrupts production in the Gulf of Mexico, which is home to 10% of U.S. natural gas production.
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 26 on Thursday.
The report was expected to show that U.S. natural gas inventories increased by 60 billion cubic feet, after adding 73 billion cubic feet in the preceding week.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in October eased up 0.05% to trade at USD88.92 a barrel, while heating oil for October delivery climbed 0.47% to trade at USD3.086 per gallon.
On the New York Mercantile Exchange, natural gas futures for October delivery traded at USD3.996 per million British thermal units during U.S. morning trade, surging 2.04%.
It earlier rose as much as 2.3% to trade at USD4.011 per million British thermal units, the highest price since August 23.
The U.S. National Hurricane Center said earlier that Tropical Storm Katia strengthened over the Atlantic Ocean overnight, raising its maximum winds to approximately 70 miles per hour.
The storm, which is located about 885 miles west of Cape Verde, has a good chance to of becoming a hurricane by late Wednesday. A tropical storm becomes a hurricane when its winds reach 74 miles per hour.
"Katia continues to look more impressive on satellite images and steady strengthening appears to be likely," the NHS said in an earlier advisory.
The NHS added that another storm system located near the northwestern Caribbean Sea has a 10% chance of becoming a cyclone in the next 48 hours, and could move into the western Gulf of Mexico.
Energy traders track tropical storm activity in the event it disrupts production in the Gulf of Mexico, which is home to 10% of U.S. natural gas production.
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 26 on Thursday.
The report was expected to show that U.S. natural gas inventories increased by 60 billion cubic feet, after adding 73 billion cubic feet in the preceding week.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in October eased up 0.05% to trade at USD88.92 a barrel, while heating oil for October delivery climbed 0.47% to trade at USD3.086 per gallon.