U.S. natural gas futures surge 2% on chilly weather forecasts

20-Oct-2015

Investing.com - U.S. natural gas futures extended gains from the prior session on Tuesday, as forecasts for chilly temperatures across key consumption regions of the U.S. boosted demand expectations for the fuel.

Natural gas for delivery in November on the New York Mercantile Exchange jumped 4.4 cents, or 1.8%, to trade at $2.487 per million British thermal units during U.S. morning hours.

A day earlier, natural gas futures tacked on 1.2 cents, or 0.49%, as a cold blast hit the U.S. Northeast, boosting near-term demand expectations for the heating fuel.

Updated weather forecasting models showed that a cold front will impact the northern U.S. through October 28.
Bullish speculators are betting on the cold weather boosting early-winter demand for the heating fuel. The heating season from November through March is the peak demand period for U.S. gas consumption.

Meanwhile, U.S. supply levels remained in focus. According to the Energy Information Administration, natural gas storage increased by 100 billion cubic feet last week, above expectations for an increase of 93 billion. Supplies rose by 105 billion cubic feet in the same week last year, while the five-year average change is an increase of 87 billion cubic feet. (From Investing.com)