Natural gas futures gained in New York on speculation that unusually cold weather in the East will spur demand for the heating fuel.
Gas rose as much as 1.4 percent as forecasters including MDA Weather Services predicted colder weather across most of the East this week. Waves of freezing weather may increase the pace of gas withdrawals from storage after an unseasonably warm start to the heating season.
“The late withdrawals we’ve seen late in the season just mean we are going to have to put more gas in storage this summer,” said Tom Saal, senior vice president of energy trading at FCStone Latin America LLC in Miami. “As the weather starts to thaw out, we should work a little lower.”
Natural gas for April delivery increased 4.6 cents, or 1.3 percent, to $3.502 per million British thermal units at 9:26 a.m. on the New York Mercantile Exchange. Prices have climbed 4.4 percent this year. Trading volume was 29 percent below the 100-day average for the time of day.
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