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Natural Gas Advances for Second Day on Outlook for Hot Weather

Natural gas futures climbed for a second day in New York on forecasts for hotter-than-usual weather that would boost demand for electricity generation.

Gas gained as much as 1.2 percent as MDA Weather Services in Gaithersburg, Maryland, said temperatures would be above normal in most of the lower-48 states from July 20 through July 29. The high in St. Louis on July 24 may be 95 degrees Fahrenheit (35 Celsius), 6 higher than usual, according to AccuWeather Inc. in State College, Pennsylvania.

“We’re starting to see some heat come into the equation and provide some support for gas prices,” said Phil Flynn, a senior market analyst at Price Futures Group in Chicago. “The weather is looking a lot more seasonal for the middle of summer.”

Natural gas for August delivery rose 2 cents, or 0.6 percent, to $3.664 per million Btu at 9:08 a.m. on the New York Mercantile Exchange. Trading volume was 25 percent below the 100-day average. Prices have advanced 9.3 percent this year.

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