Natural Gas Future Rise a Second Day on Forecasts for U.S. Heat
Natural gas futures rose for a second day in New York on speculation that late-August heat in the U.S. will stoke demand for the power plant fuel.
Futures for September delivery gained as much as 0.5 percent to $3.481 per million British thermal units in electronic trading on the New York Mercantile Exchange and were at $3.474 at 11:45 a.m. in Singapore. The contract climbed 2.8 percent, the most in a month, to settle at $3.463 yesterday.
Forecasters including MDA Weather Services in Gaithersburg, Maryland, predicted above-normal temperatures from the U.S. Northeast to the West Coast through Sept. 2.
Temperatures in the Midwest probably will linger above normal until the start of September, according to Matt Rogers, the president of Commodity Weather Group LLC in Bethesda, Maryland. That region and the northern Great Plains may be 3 to 8 degrees Fahrenheit (1.7 to 4.4 Celsius) warmer than usual from Aug. 24 to Aug. 28.
Power plants account for 32 percent of U.S. gas use, according to the Energy Information Administration, the Energy Department’s statistical unit.
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