Investing.com – Natural gas futures were higher on Tuesday, rebounding from a five-month low as renewed concerns over a potential disruption to U.S. supplies in the Gulf of Mexico buoyed prices.
On the New York Mercantile Exchange, natural gas futures for October delivery traded at USD3.858 per million British thermal units during U.S. morning trade, climbing 0.74%.
It earlier rose as much as 0.95% to trade at a daily high of USD3.874 per million British thermal units.
The U.S. National Hurricane Center said earlier that tropical storm Katia formed over the Atlantic Ocean and that it has a 30% chance of strengthening to a hurricane by late Wednesday or early Thursday.
The new storm comes on the heels of Irene, which hit the U.S. east coast states over the weekend.
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.
Natural gas prices fell to a five-month low earlier as forecasts showed moderating weather temperatures across many regions in the U.S. during the next two weeks.
Industry weather group Global Weather Monitoring said in a report late Monday that while it expected warmer-than-normal temperatures in the Southern U.S. states, the U.S. Midwest and Northeast regions were expected to see seasonably normal weather through the second week of September.
Natural gas traders monitor weather forecasts to determine whether temperatures may boost heating or cooling demand.
Predictions of below-average or above-average temperatures may prompt traders to buy or sell gas futures.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in October jumped 1.5% to trade at USD88.58 a barrel, while heating oil for October delivery climbed 1.58% to trade at USD3.069 per gallon.
On the New York Mercantile Exchange, natural gas futures for October delivery traded at USD3.858 per million British thermal units during U.S. morning trade, climbing 0.74%.
It earlier rose as much as 0.95% to trade at a daily high of USD3.874 per million British thermal units.
The U.S. National Hurricane Center said earlier that tropical storm Katia formed over the Atlantic Ocean and that it has a 30% chance of strengthening to a hurricane by late Wednesday or early Thursday.
The new storm comes on the heels of Irene, which hit the U.S. east coast states over the weekend.
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.
Natural gas prices fell to a five-month low earlier as forecasts showed moderating weather temperatures across many regions in the U.S. during the next two weeks.
Industry weather group Global Weather Monitoring said in a report late Monday that while it expected warmer-than-normal temperatures in the Southern U.S. states, the U.S. Midwest and Northeast regions were expected to see seasonably normal weather through the second week of September.
Natural gas traders monitor weather forecasts to determine whether temperatures may boost heating or cooling demand.
Predictions of below-average or above-average temperatures may prompt traders to buy or sell gas futures.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in October jumped 1.5% to trade at USD88.58 a barrel, while heating oil for October delivery climbed 1.58% to trade at USD3.069 per gallon.