U.S. Natural Gas Has Best Week of 2016 as Supply Glut Narrows
- Increased power-plant deman seen cutting inventory gains
- Short sellers probably driving the rally, IAF's Cooper says
A series of pipes direct natural gas in Bismarck, North Dakota.
Photographer: Daniel Acker/BloombergThis article is for subscribers only.
U.S. natural gas futures had their best week of the year on signs that summer-like temperatures in the East will help trim a supply glut.
Above-normal temperatures across most of the lower 48 states will rise in the South at the start of May, stoking demand for the power-plant fuel to run air conditioners. Preliminary pipeline data shows that stockpiles may increase by about 55 billion cubic feet this week, “way lower” than the year-earlier gain of 84 billion, according to Kyle Cooper, director of research with IAF Advisors and Cypress Energy Capital Management.