We have updated our privacy policy and terms & conditions. Find out more here.
3
 

Natural gas continues to surge on cold weather, colder forecasts

By Investing.comCommoditiesNov 13, 2012 08:54PM GMT Add a Comment
 
AA
+
-

Investing.com - Natural gas futures surged nearly 5% during U.S. afternoon trade Tuesday, as forecasts indicating colder-than-normal temperatures across most parts of the U.S. in the coming week boosted near-term demand expectations for the heating fuel.

Market players also looked ahead to a closely watched U.S. government report on natural gas supplies on Thursday, amid speculation the data could show the first withdrawal of the winter heating season.

On the New York Mercantile Exchange, natural gas futures for delivery in December traded at USD3.744 per million British thermal units during U.S. morning trade, rallying 4.83%.       

Updated weather forecasts released earlier showed that cold weather was expected in most parts of the U.S. Southeast during the next five days. 

Meanwhile, the Commodity Weather Group said earlier that temperatures may be colder-than-normal across most of the eastern half of the U.S. through November 17.

Bullish speculators are betting on the colder weather increasing early-winter demand for the heating fuel. 

Natural gas prices drew additional support from expectations this Thursday’s storage data will show the first withdrawal of the U.S. heating season, in what would be the earliest seasonal decline since 2007.

The heating season from November through March is the peak demand period for U.S. gas consumption.

Early injection estimates range from a build of 15 billion cubic feet to a draw of 17 billion cubic feet, compared to last year's build of 20 billion cubic feet. The five-year average change for the week is an increase of 17 billion cubic feet.

Total U.S. gas supplies stood at 3.929 trillion cubic feet, an all-time record that surpasses the previous peak of 3.852 trillion cubic feet reached last November. 

Stocks are 2.9% above a year ago and 6.6% above the five-year average for the week.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in January shed 0.25% to trade at USD85.88 a barrel, while heating oil for December delivery fell 1.1% to trade at USD2.966 per gallon. 
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Add a Comment

 

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Total
 
 
 
Are you sure you want to delete this chart?
 
 
 
Are you sure you want to delete this chart?
 
 
 

Successfully Reported

Thank you. This comment has been flagged for a moderator.
_touchLoadingMsg