Natural gas futures rose in New York on forecasts for hotter weather that signaled increased demand for the power-plant fuel.
Gas gained as much as 1.1 percent as above-normal temperatures may sweep across most of lower 48 states from June 12 through June 21, according to MDA Weather Services in Gaithersburg Maryland. Prices yesterday dropped to a 12-week low after a government report showed a bigger-than-forecast stockpile increase.
“As we get into mid-month June, you see pretty impressive heat building in the middle of the country and moving eastward,” said Teri Viswanath, director of commodities strategy at BNP Paribas SA in New York. “You are going to see increased electric-power demand keep our weekly storage injections in check.”
Natural gas for July delivery rose 1.5 cents, or 0.4 percent, to $3.842 per million British thermal units at 9:38 a.m. on the New York Mercantile Exchange. Trading volume was 11 percent above the 100-day average for the time of day.
The futures fell to $3.827 yesterday, the lowest settlement price since March 14. Prices have dropped 3.6 percent this week, headed for a second straight weekly drop.
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