U.S. Gas Rebounds From 6-Day Losing Streak on Eastern Heat Waveby
U.S. natural gas futures climbed, bouncing back from a six-day decline, on forecasts for scorching eastern heat that would stoke demand for the power-plant fuel.
The weather will probably be hotter than normal in the Mid-Atlantic and Great Lakes region through Aug. 26, according to MDA Weather Services. New York’s high may reach 94 degrees Fahrenheit (34 Celsius) on Aug. 13, 11 above average, AccuWeather Inc. data show.
Intense heat has boosted air-conditioner use in the eastern U.S., pushing gas demand for power generation to a record. Still, prices capped a second straight weekly decline on speculation that stockpiles will expand at a faster pace as fall approaches, sending supplies to an all-time high before the winter.
“The heat wave has produced a lot of gas demand, and there’s some short-covering ahead of the weekend, but traders are still focused on the amount of gas in storage,” said Tom Saal, senior vice president of energy trading at FCStone Latin America LLC. “After a six-day decline, we were bound to get a bounce.”
Gas futures rose 3.5 cents, or 1.4 percent, to settle at $2.586 per million British thermal units on the New York Mercantile Exchange. Prices slid 6.7 percent this week, the biggest weekly decline since the seven days ended March 4.