Natural gas futures in New York rose for the first time in five days on speculation that cold weather boosted demand enough to eliminate a stockpile glut.
Gas rose as much as 1 percent as the Energy Information Administration may report that stockpiles fell by 90 billion cubic feet to a two-year low of 1.691 trillion in the week ended March 29, according to the median estimate of 23 analysts compiled by Bloomberg. That would eliminate a surplus to the five-year average that has persisted for 18 months.
“The storage report coming out today is giving a little support,” said Gene McGillian, an analyst and broker with Tradition Energy in Stamford, Connecticut. “If it wasn’t for the unexpected heating demand of the last six weeks, that wouldn’t have happened. Unless we have a really hot summer, we’ll refill storage and see resistance above four dollars.”
Natural gas for May delivery rose 3.3 cents, or 0.9 percent, to $3.933 per million British thermal units at 9:16 a.m. in the New York Mercantile Exchange. Trading was 11 percent above the 100-day average for the time of day. The futures have advanced 17 percent this year.
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