Investing.com – Natural gas futures advanced on Monday, re-approaching the highest price in ten months 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 USD4.806 per million British thermal units during U.S. morning trade, surging 2.55%.
It earlier rose by as much as 2.9% to USD4.846 per million British thermal units, the highest price June 2, when prices hit a 10-month high of USD4.856.
The Commodity Weather Group said earlier that it expected a “big burst” of heat across the eastern U.S. states through June 11, as temperatures should be the warmest of the season so far for East Coast cities.
The weather group added that temperatures were forecast to be as much as eight degrees above normal in parts of the U.S. Midwest through June 10, while warmer-than-normal weather was forecast for most of the southern and western U.S. states through June 20.
According to weather service provider AccuWeather, the high temperature in Houston, Texas on June 10 will be 101 degrees Fahrenheit (38 Celsius), six degrees above normal.
Hotter-than-normal weather increases the need for gas-fired electricity to power air conditioning, boosting demand for natural gas.
Meanwhile, the International Energy Agency said earlier in the day that natural gas could be entering a “golden age” and that prices could rise by more than 50% from 2010 levels.
IEA Executive Director Nobuo Tanaka said that he expected natural gas to represent a much larger portion of the global energy mix and account for more than 25% of global energy demand by 2035, as governments clamp down against nuclear energy following the recent Japan crisis.
Elsewhere, light sweet crude oil futures for delivery in July tumbled 1.8% to trade at USD98.75 a barrel, while heating oil for July delivery slumped 1.6% to trade at USD3.016 per gallon during U.S. morning trade.
On the New York Mercantile Exchange, natural gas futures for July delivery traded at USD4.806 per million British thermal units during U.S. morning trade, surging 2.55%.
It earlier rose by as much as 2.9% to USD4.846 per million British thermal units, the highest price June 2, when prices hit a 10-month high of USD4.856.
The Commodity Weather Group said earlier that it expected a “big burst” of heat across the eastern U.S. states through June 11, as temperatures should be the warmest of the season so far for East Coast cities.
The weather group added that temperatures were forecast to be as much as eight degrees above normal in parts of the U.S. Midwest through June 10, while warmer-than-normal weather was forecast for most of the southern and western U.S. states through June 20.
According to weather service provider AccuWeather, the high temperature in Houston, Texas on June 10 will be 101 degrees Fahrenheit (38 Celsius), six degrees above normal.
Hotter-than-normal weather increases the need for gas-fired electricity to power air conditioning, boosting demand for natural gas.
Meanwhile, the International Energy Agency said earlier in the day that natural gas could be entering a “golden age” and that prices could rise by more than 50% from 2010 levels.
IEA Executive Director Nobuo Tanaka said that he expected natural gas to represent a much larger portion of the global energy mix and account for more than 25% of global energy demand by 2035, as governments clamp down against nuclear energy following the recent Japan crisis.
Elsewhere, light sweet crude oil futures for delivery in July tumbled 1.8% to trade at USD98.75 a barrel, while heating oil for July delivery slumped 1.6% to trade at USD3.016 per gallon during U.S. morning trade.