Natural gas futures climbed in New York on speculation that a late winter cold snap will help reduce a U.S. supply glut.
Gas gained as much as 1 percent as Commodity Weather Group LLC predicted below-normal eastern temperatures over the next six to 10 days. An Energy Information Administration report tomorrow may show U.S. stockpiles fell by 168 billion cubic feet last week, eight analyst estimates compiled by Bloomberg show. The five-year average drop for the period is 118 billion.
“The tail end of winter has definitely been supportive,” said Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York. “There is a perception that tomorrow’s natural gas storage number is going to come in as a pretty big number.”
Natural gas for April delivery rose 3.2 cents, or 0.9 percent, to $3.488 per million British thermal units at 9:09 a.m. on the New York Mercantile Exchange. Gas futures yesterday rose to a one-month intraday high of $3.517. Prices are up 4 percent this year. Trading volume was 26 percent below the 100- day average for the time of day.
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