Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

U.S. natural gas futures climb to six-day high

Published 2017-08-22, 08:18 a/m
© Reuters.  U.S. natural gas extends rally
NG
-

Investing.com - U.S. natural gas futures edged higher for the second straight session on Tuesday, hitting their strongest level in more than a week as near-term weather forecasts turned warmer.

U.S. natural gas for September delivery was at $2.998 per million British thermal units by 8:15AM ET (1215GMT), up 3.6 cents, or around 1.2%. It touched its highest since August 14 at $3.000 earlier.

Futures posted their strongest one-day gain in roughly two weeks on Monday, jumping 2.5% after updated weather forecasting models showed that hot high pressure will dominate most of the U.S. in the week ahead.

Highs of upper 80s to 100s are expected to drive considerably stronger than normal national demand until the end of the week.

Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting outlooks on late-summer cooling demand.

Nearly 50% of all U.S. households use gas for cooling.

Total natural gas in storage currently stands at 3.082 trillion cubic feet, according to the U.S. Energy Information Administration, 7.6% lower than levels at this time a year ago but 1.8% above the five-year average for this time of year.

Early market expectations for this week's storage data due on Thursday is for a build in a range between 37 and 47 billion cubic feet in the week ended August 18.

That compares with a gain of 53 billion cubic feet in the preceding week, a build of 11 billion a year earlier and a five-year average rise of 53 billion cubic feet.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.