Investing.com - Natural gas prices shot up on Tuesday after updated weather forecasting models pointing to warmer weather settling in over the U.S. Midwest, while the potential for tropical storm development in the southern Gulf of Mexico boosted prices as well.
On the New York Mercantile Exchange, natural gas futures for delivery in October traded at USD3.650 per million British thermal units during U.S. trading, up 1.91%. The October contract settled down 1.02% at USD3.581 per million British thermal units on Friday.
The commodity hit a session low of USD3.641 and a high of USD3.683.
Above-normal temperatures should make their appearance across the U.S. Midwest through mid-September, while the northeastern U.S. could see rising mercury readings as well.
Demand for natural gas tends to rise amid heat waves, as homes and businesses throttle up their air conditioners.
Recent weather reports called for milder temperatures across the eastern U.S., which allowed prices to fall in past sessions.
Elsewhere, the U.S. National Hurricane Center said it was tracking three low-pressure systems in the Atlantic basin, one of which showed some potential of developing in the Gulf of Mexico, home to 10% of U.S. natural gas production..
Tropical weather systems often disrupt production by prompting gas rig operators to evacuate offshore facilities.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in October were up 0.52% and trading at USD108.21 a barrel, while heating oil for October delivery were up 0.51% and trading at USD3.1526 per gallon.
On the New York Mercantile Exchange, natural gas futures for delivery in October traded at USD3.650 per million British thermal units during U.S. trading, up 1.91%. The October contract settled down 1.02% at USD3.581 per million British thermal units on Friday.
The commodity hit a session low of USD3.641 and a high of USD3.683.
Above-normal temperatures should make their appearance across the U.S. Midwest through mid-September, while the northeastern U.S. could see rising mercury readings as well.
Demand for natural gas tends to rise amid heat waves, as homes and businesses throttle up their air conditioners.
Recent weather reports called for milder temperatures across the eastern U.S., which allowed prices to fall in past sessions.
Elsewhere, the U.S. National Hurricane Center said it was tracking three low-pressure systems in the Atlantic basin, one of which showed some potential of developing in the Gulf of Mexico, home to 10% of U.S. natural gas production..
Tropical weather systems often disrupt production by prompting gas rig operators to evacuate offshore facilities.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in October were up 0.52% and trading at USD108.21 a barrel, while heating oil for October delivery were up 0.51% and trading at USD3.1526 per gallon.