Natural gas futures climbed in New York to the highest price in more than three years as a frigid end to January will stoke demand for the heating fuel.
Gas climbed as much as 5.6 percent, rising near $5 for the first time since August 2010, as Commodity Weather Group LLC predicted below-normal temperatures across most of the lower 48 states through the balance of the month.
“We will sustain this level of cold and we could challenge lows over multiple days over the next five days,” said Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York. “We haven’t seen $5 since August 2010; you came within four ticks of it.”
Natural gas for February delivery advanced 19.7 cents, or 4.2 percent, to $4.927 per million British thermal units at 9:29 a.m. on the New York Mercantile Exchange after rising to $4.996, the highest intraday price since Aug. 2, 2010. Trading volume was 91 percent above the 100-day average. Gas has jumped 14 percent this week, heading for the biggest increase since the seven days ended Sept. 28, 2012.
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