Natural gas futures climbed for a second day in New York on forecasts for warmer weather that would stoke power demand, and as some Gulf of Mexico production was shut after Tropical Storm Karen.
Gas gained as much as 2.5 percent. MDA Weather Services in Gaithersburg, Maryland, predicted above-normal temperatures in the central and eastern U.S. through Oct. 21. About 48 percent of Gulf gas output, or 1.8 billion cubic feet a day, was offline as of yesterday, according to the U.S. Bureau of Safety and Environmental Enforcement.
“Temperatures have been above normal, which is supportive for gas demand,” said Phil Flynn, a senior market analyst at Price Futures Group in Chicago. “Traders are still pricing in some of the production lost because of the storm.”
Natural gas for November delivery rose 8.3 cents, or 2.4 percent, to $3.589 per million British thermal units at 9:11 a.m. on the New York Mercantile Exchange. Trading volume was 11 percent above the 100-day average. Prices have advanced 7.1 percent this year.
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