Natural gas futures climbed for a second day in New York on forecasts of below-normal temperatures that would boost demand for the heating fuel.
Gas gained as much as 1.3 percent. MDA Weather Services said the weather may be colder than average in the Midwest through Feb. 24. Prices for the heating fuel have remained above the 200-day moving average near $3.101 per million British thermal units, a bullish technical signal, according to Phil Flynn, senior market analyst at Price Futures Group in Chicago.
“I can testify to the fact that it’s very cold here in Chicago and heating demand is rising,” Flynn said. “Prices have popped so far above the 200-day moving average that we also have some technicians jumping into the gas market.”
Natural gas for March delivery rose 3.7 cents, or 1.1 percent, to $3.309 per million British thermal units at 9:03 a.m. on the New York Mercantile Exchange. Prices have rebounded after dropping 3.6 percent last week. Trading volume was 4.9 percent below the 100-day average for the time of day.
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