From the Wall Street Journal
NEW YORK–Natural gas prices rose Tuesday on forecasts for colder-than-normal weather.
Natural gas futures for November delivery settled up 3.4 cents, or 1.4%, to $2.476 a million British thermal units.
Prices fell to a three-year low Friday after inventory data showed that U.S. stockpiles of the fuel grew more than expected, indicating weaker demand or stronger production than analysts had anticipated.
Since then, forecasts have turned colder in the near term, boosting demand expectations. Cold weather adds to natural-gas consumption as more buildings use indoor heating.
Forecasts for the next six to 10 days are calling for colder-than-average weather in the eastern U.S., though temperatures are expected to moderate after that.
“This market continues to see a lift from updated weather forecasts that have largely taken mild temps off of the table…beginning late this week and extending toward the middle of next week,” said energy-advisory firm Ritterbusch & Associates in a note. “But, we still see an expected warmup next week as placing renewed pressures on the market.”
