Natural gas futures gained for the fourth time in five days on speculation that cold weather accompanying heavy snow in the U.S. Northeast will spur heating demand.
Gas rose as much as 1.2 percent as the weather system may bring a foot of snow to New York and 2 feet to Boston. MDA Weather Services said temperatures in East will be mostly seasonal next week, down from above-normal readings predicted yesterday. A gas supply surplus has widened since November as mild weather crimped fuel use.
“The storm is so big I don’t think you can discount it,” said Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York. “It’s not going to be all that cold but when you’ve got everybody locked in doors hunkered down you have significant demand.”
Natural gas for March delivery increased 3.1 cents, or 0.9 percent, to $3.316 per million British thermal units at 9:41 a.m. on the New York Mercantile Exchange. Prices are up 35 percent from a year ago. Volume was 8.2 percent below the 100- day average for the time of day.
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