U.S. Gas Rises After Falling on Moderate Weather Forecast

Natural gas futures extended gains in New York on speculation that increased demand from electricity generators because of fuel switching will help reduce a supply surplus.

Natural gas for October delivery rose as much as 1 percent to $2.952 per million British thermal units in electronic trading today on the New York Mercantile Exchange and sold for $2.944 at 11 a.m. Singapore time. The more-actively traded November contract rose as much as 0.6 percent to $3.124.

The October contract, which expires today, increased 8.7 cents yesterday to $2.924 per million Btu, the highest settlement price since Sept. 14. The futures are down 1.5 percent this year.

Power plants have consumed 27.3 billion cubic feet of gas a day this month, up 21 percent from the same period a year ago, data from LCI Energy Insight in El Paso, Texas, show. A supply glut has eased as electricity generators burned more gas instead of coal.

To contact the reporter on this story: Naureen S. Malik in New York at Nmalik28@bloomberg.net;

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.