Natural gas gained for a third day in New York as forecasts for a colder start to February signaled increased demand for the heating fuel.
Gas rose as much as 1.2 percent as MDA Weather Services in Bethesda, Maryland, said temperatures will be lower over the next five days than weather models showed yesterday. The temperature in Minneapolis on Feb. 5 may be 3 degrees Fahrenheit (minus 16 Celsius), 7 below the usual reading, according to AccuWeather Inc. in State College, Pennsylvania.
“We have a little bit of cold that is supposed to settle in the Midwest and the Northeast over the next four days,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “The market is trying to build on a two- day rebound. The legs of this rally aren’t very strong.”
Natural gas for March delivery rose 3.2 cents, or 1 percent, to $3.371 per million British thermal units at 9:19 a.m. on the New York Mercantile Exchange. Trading was down 19 percent from the 100-day average for the time of day. The futures are up 0.6 percent this year.
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