Natural gas futures advanced for a third day in New York, climbing to the highest price in more than a week. Forecasts showed colder-than-normal weather that would boost demand for the heating fuel.
Gas gained as much as 1.7 percent after Commodity Weather Group LLC predicted a Northeast snowstorm later this week and below-average temperatures in most of the lower-48 states from Feb. 16 through Feb. 20. An earlier outlook showed warmer-than- usual readings in parts of the eastern U.S. The futures have rebounded after dropping 4.2 percent last week.
“This is basically a weather event for the gas market,” said Tom Doremus, an analyst at Tradition Energy in Stamford, Connecticut. “We have a winter storm coming over the weekend and the market couldn’t break further to the downside.”
Natural gas for February delivery rose 4.8 cents, or 1.4 percent, to $3.447 per million British thermal units at 9:11 a.m. on the New York Mercantile Exchange. Trading volume was 41 percent above the 100-day average. The futures have gained 35 percent from a year ago.
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