Investing.com – Natural gas futures rose to its best level in around there months on Tuesday, as updated forecasting models pointed to above-average temperatures covering most of the country through the end of May.
That should help boost early summer cooling demand for the fuel.
Front-month tacked on 0.9 cents, or around 0.3%, to $2.849 per million British thermal units (btu) by 8:20AM ET (1220GMT), after hitting an intraday high of $2.856, the strongest since February 5.
Natural gas futures jumped 1.3% in the last session, boosted by forecasts of building heat across major areas of the United States.
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.
Meanwhile, market participants looked ahead to this week’s storage data due on Thursday. Analysts forecast an increase in a range between 97 and 109 billion cubic feet (bcf) for the week ended May 11.
That compares with a build of 89 bcf in the preceding week, an increase of 68 bcf a year earlier and a five-year average rise of 87 bcf.
Total natural gas in storage currently stands at 1.432 trillion cubic feet (tcf), according to the U.S. Energy Information Administration.
That figure is 863 bcf, or around 37.6%, lower than levels at this time a year ago, and 520 bcf, or roughly 26.6%, below the five-year average for this time of year.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Source: Investing.com
