Investing.com – Natural gas futures surged to their highest level in almost two years on Monday, as traders reacted to bullish weather forecasts for most parts of the United States over the next two weeks.
U.S. jumped 25.8 cents, or around 7.8%, to $3.542 per million British thermal units by 8:45AM ET (1345GMT). It reached its best level since December 30, 2016 at $3.570 earlier.
Weather systems will track across the northern U.S. the next several days with rain and snow, leading to an increase in heating demand.
Natural gas prices typically rise ahead of the winter as colder weather sparks indoor-heating demand.
The heating season from November through March is the peak demand period for U.S. gas consumption.
Meanwhile, market participants looked ahead to storage data for the week ending November 2, due out on Thursday.
Total natural gas in storage currently stands at 3.143 trillion cubic feet (tcf), according to the U.S. Energy Information Administration, the lowest level for this time of year in 15 years.
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