Natural gas futures climbed in New York for the second time in three days on forecasts of a Midwest chill that would boost demand for the heating fuel.
Gas gained as much as 1.8 percent after MDA Weather Services predicted below-normal temperatures in parts of the central U.S. from Feb. 18 through Feb. 22. Yesterday’s outlook had shown mostly normal readings in the region. The low in Minneapolis on Feb. 20 may be 6 degrees Fahrenheit (minus 14 Celsius), 9 lower than usual, according to AccuWeather Inc.
“We’re still technically in winter and the market is reacting to the weather forecasts,” said Tom Saal, senior vice president of energy trading at FCStone Latin America LLC in Miami. “Prices are trying to rally a little bit in response to the cold.”
Natural gas for March delivery rose 3.9 cents, or 1.2 percent, to $3.269 per million British thermal units at 9 a.m. on the New York Mercantile Exchange. Prices are up 35 percent from a year ago. Trading volume was 20 percent below the 100-day average for the time of day.
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