Natural gas futures in New York advanced for the second time in three days amid forecasts of colder-than-normal weather after tumbling yesterday to a five- week low.
Gas gained as much as 0.8 percent. Commodity Weather Group LLC in Bethesda, Maryland, predicted below-normal temperatures across most of the lower 48 states from Feb. 20 through Feb. 24. Prices slid to $3.163 per million British thermal units yesterday, the lowest level since Jan. 9, after a government report showed a smaller drop than expected in gas inventories.
“The weather is looking a bit supportive for the next 10 days,” said Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York. “Prices are bouncing off of yesterday’s low.”
Natural gas for March delivery rose 1 cent, or 0.3 percent, to $3.173 per million British thermal units at 9:06 a.m. on the New York Mercantile Exchange. Prices are up 31 percent from a year ago. Trading volume was 7.7 percent below the 100-day average for the time of day. Futures are down 3 percent this week, heading for a fourth weekly decline.
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