Natural Gas Rose on Outlook for Below-Average Supply Increase
Natural gas futures gained for a fourth day in New York before a government report that may show a smaller-than-average U.S. inventory increase.
Gas rose much as 1.5 percent as the Energy Information Administration may say stockpiles rose 62 billion cubic feet last week, based on the median of 25 analyst estimates compiled by Bloomberg. The five-year average gain for the period is 66 billion. Above-normal U.S. temperatures this week will give way to cooler readings in the East next week, according to MDA Weather Services.
“Everyone is holding their breath, waiting for another storage number to come out,” said Tom Saal, senior vice president of energy trading at FCStone Latin America LLC in Miami. “People are looking for the low 60s; that’s already priced in the market. The market has a little bit of a bearish feel to it because of a lack of significant weather and because we are on track for ample storage at the end of the season.”
Natural gas for October delivery rose 1.3 cents, or 0.4 percent, to $3.595 per million British thermal units at 9:08 a.m. on the New York Mercantile Exchange. Trading volume was 4.3 percent below the 100-day average. Prices have climbed 7.3 percent this year.
The EIA, the Energy Department’s statistical arm, is scheduled to release its weekly gas supply report at 10:30 a.m. in Washington.
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