Investing.com - U.S. natural gas futures rose to a five-month high on Monday, on forecasts for continued above-normal temperatures across most parts of the U.S. over the next two weeks.
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.
Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting outlooks on early summer cooling demand.
Gas use typically hits a seasonal low with spring's mild temperatures, before warmer weather increases demand for gas-fired electricity generation to power air conditioning.
Natural gas for delivery in July on the New York Mercantile Exchange rose to an intraday peak of $2.480 per million British thermal units, the most since January 11. It last stood at $2.419 by 14:35GMT, or 10:35AM ET, up 2.1 cents, or 0.88%.
The July contract soared more than 10% last week as warmer weather lifted cooling demand prospects for the fuel.
Gains were limited amid concerns over record-high storage levels. Total U.S. natural gas storage stood at 2.907 trillion cubic feet as of last week, according to the U.S. Energy Information Administration, 24.5% higher than levels at this time a year ago and 25.9% above the five-year average for this time of year.
Unless intense summer heat boosts demand from power plants, stockpiles will test physical storage limits of 4.3 trillion cubic feet at the end of October.
Elsewhere on the Nymex, crude oil for delivery in July jumped $1.19, or 2.45%, to trade at $49.81 a barrel, while heating oil for July delivery increased 1.1% to trade at $1.504 per gallon.