Natural gas rose from the highest level in more than two weeks in New York on forecasts for warmer weather that could stoke power demand. some Gulf of Mexico production remained shut after Tropical Storm Karen.
Natural gas for November delivery increased as much as 0.5 percent to $3.647 per million British thermal units in electronic trading on the New York Mercantile Exchange and was at $3.643 at 11:12 a.m. Singapore time. The contract settled at $3.629 yesterday, up 3.5 percent, the biggest gain in 11 weeks.
MDA Weather Services in Gaithersburg, Maryland, predicted above-normal temperatures in the central and eastern U.S. through Oct. 21. About 37 percent, or 1.4 billion cubic feet a day, of Gulf natural gas output was still offline, the U.S. Bureau of Safety and Environmental Enforcement said yesterday.
“Temperatures have been above normal, which is supportive for gas demand,” Phil Flynn, a senior market analyst at Price Futures Group in Chicago said yesterday. “Traders are still pricing in some of the production lost because of the storm.”
Karen dissipated as it moved over southeastern Alabama, the National Hurricane Center said yesterday. As much as 48 percent of gas output was shut during the storm, BSEE data show.
“Production losses related to Tropical Storm Karen look somewhat higher than anticipated,” Tim Evans, an energy analyst at Citi Futures Perspective in New York, wrote in a note to clients Oct. 7.
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