U.S. natural gas futures rose to a near four-week high on Wednesday, supported by forecasts for hotter weather and firm oil prices, while investors awaited a federal storage report due this week.
U.S. natural gas futures rose to a near four-week high on Wednesday, supported by forecasts for hotter weather and firm oil prices, while investors awaited a federal storage report due this week.
Front-month gas futures for September delivery on the New York Mercantile Exchange rose 9.6 cents, or 3.5%, to $2.87 per million British thermal units, their highest level since July 24.
Oil prices steadied near a three-week high on uncertainty over shipping through the Strait of Hormuz and other ongoing supply disruptions in the market.
"(Natgas) market is currently edging higher... with the help of some bullish adjustments to the short-term 1–2-week temperature outlooks," consultancy Ritterbusch & Associates said in a note.
Meteorologists forecast mostly warmer-than-normal temperatures through September 2, as Cooling Degree Days rose to 217 on Wednesday from 212 on Tuesday. CDDs measure energy demand to cool buildings.
About 40% of U.S. power generation comes from gas-fired plants.
"While the weather-related demand factor may be supporting gas values during the past couple of sessions, the supply side of the equation remains as a major impediment toward sustainable price strength," Ritterbusch added.
Investors now await the U.S. Energy Information Administration's weekly gas storage
Content Original Link:
" target="_blank">
