Investing.com - Natural gas prices shot up by more than 4% on Monday after updated weather forecasting models reversed course and replaced calls for mild fall weather with calls for warmer mercury readings.
On the New York Mercantile Exchange, natural gas futures for delivery in November traded at USD3.653 per million British thermal units during U.S. trading, up 4.18%.
The commodity hit a session low of USD3.520 and a high of USD3.659.
The November contract settled up 0.20% at USD3.506 per million British thermal units on Friday.
Previous weather forecasts calling for seasonably mild temperatures gave way to predictions for above-normal temperatures for much of the central and eastern U.S. through Oct. 21.
Demand for natural gas tends to rise at the country's thermal power plants as temperatures rise, as homes and businesses throttle up on their air conditioners.
Elsewhere, Tropical Storm Karen dissipated in the Gulf of Mexico, though rig closures and evacuations that took place during the storm's life continued to pressure prices upward even if on a temporary basis.
According to the U.S. Bureau of Safety and Environmental Enforcement, approximately 48% of U.S. natural gas production in the Gulf was offline as of Oct. 6 though operations should return to normal soon.
Meanwhile, U.S. supply levels also remained in focus. Total U.S. natural gas storage stood at 3.487 trillion cubic feet as of last week, nearly 4% below last year's unusually high level but 1.4% above the five-year average for this time of year.
Early injection estimates for this week’s storage data range from 90 billion cubic feet to 103 billion cubic feet, compared to a 73 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 84 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in November were down 0.37% and trading at USD103.46 a barrel, while heating oil for November delivery were down 0.76% and trading at USD3.0217 per gallon.
On the New York Mercantile Exchange, natural gas futures for delivery in November traded at USD3.653 per million British thermal units during U.S. trading, up 4.18%.
The commodity hit a session low of USD3.520 and a high of USD3.659.
The November contract settled up 0.20% at USD3.506 per million British thermal units on Friday.
Previous weather forecasts calling for seasonably mild temperatures gave way to predictions for above-normal temperatures for much of the central and eastern U.S. through Oct. 21.
Demand for natural gas tends to rise at the country's thermal power plants as temperatures rise, as homes and businesses throttle up on their air conditioners.
Elsewhere, Tropical Storm Karen dissipated in the Gulf of Mexico, though rig closures and evacuations that took place during the storm's life continued to pressure prices upward even if on a temporary basis.
According to the U.S. Bureau of Safety and Environmental Enforcement, approximately 48% of U.S. natural gas production in the Gulf was offline as of Oct. 6 though operations should return to normal soon.
Meanwhile, U.S. supply levels also remained in focus. Total U.S. natural gas storage stood at 3.487 trillion cubic feet as of last week, nearly 4% below last year's unusually high level but 1.4% above the five-year average for this time of year.
Early injection estimates for this week’s storage data range from 90 billion cubic feet to 103 billion cubic feet, compared to a 73 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 84 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in November were down 0.37% and trading at USD103.46 a barrel, while heating oil for November delivery were down 0.76% and trading at USD3.0217 per gallon.