Investing.com - Natural gas futures rallied for the third consecutive session on Tuesday, hitting a three-week high as prices continued to draw support from a warmer-than-normal weather outlook that was expected to increase demand for the fuel.
On the New York Mercantile Exchange, natural gas futures for delivery in June traded at USD4.167 per million British thermal units during U.S. morning trade, up 1.9% on the day.
Nymex natural gas prices rose by as much as 2% earlier in the day to hit a session high of USD4.174 per million British thermal units, the strongest level since May 2.
Updated weather forecasting models pointed to a wider swath of above-normal temperatures across most parts of the U.S. in the next two weeks, boosting near-term cooling demand expectations.
The U.S. National Weather Service’s six-to-ten-day forecast called for above-normal temperatures for about the eastern two thirds of the nation.
Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning.
U.S. supply levels also remained in focus. The U.S. Energy Information Administration said last week that natural gas storage in the U.S. rose by 99 billion cubic feet, above expectations for an increase of 95 billion cubic feet.
Total U.S. natural gas storage stood at 1.865 trillion cubic feet as of last week, 5% below the five-year average for this time of year.
Early injection estimates for this week’s storage data range from 87 billion cubic feet to 100 billion cubic feet, compared to a 75 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 90 billion cubic feet.
Sentiment on natural gas remained upbeat after the U.S. Energy Department approved natural gas exports from Freeport LNG's Texas terminal last week.
The facility would be able to ship 1.4 billion cubic feet of gas a day.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in July shed 0.3% to trade at USD96.65 a barrel, while heating oil for June delivery dipped 0.2% to trade at USD2.944 per gallon.
On the New York Mercantile Exchange, natural gas futures for delivery in June traded at USD4.167 per million British thermal units during U.S. morning trade, up 1.9% on the day.
Nymex natural gas prices rose by as much as 2% earlier in the day to hit a session high of USD4.174 per million British thermal units, the strongest level since May 2.
Updated weather forecasting models pointed to a wider swath of above-normal temperatures across most parts of the U.S. in the next two weeks, boosting near-term cooling demand expectations.
The U.S. National Weather Service’s six-to-ten-day forecast called for above-normal temperatures for about the eastern two thirds of the nation.
Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning.
U.S. supply levels also remained in focus. The U.S. Energy Information Administration said last week that natural gas storage in the U.S. rose by 99 billion cubic feet, above expectations for an increase of 95 billion cubic feet.
Total U.S. natural gas storage stood at 1.865 trillion cubic feet as of last week, 5% below the five-year average for this time of year.
Early injection estimates for this week’s storage data range from 87 billion cubic feet to 100 billion cubic feet, compared to a 75 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 90 billion cubic feet.
Sentiment on natural gas remained upbeat after the U.S. Energy Department approved natural gas exports from Freeport LNG's Texas terminal last week.
The facility would be able to ship 1.4 billion cubic feet of gas a day.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in July shed 0.3% to trade at USD96.65 a barrel, while heating oil for June delivery dipped 0.2% to trade at USD2.944 per gallon.