BLBG: Natural Gas in New York Gains as Economy May Recover This Year
Natural gas futures advanced in New York on speculation the economy may begin to recover later this year, spurring demand for energy.
Gas rose along with U.S. stock markets after earnings from Texas Instruments Inc. and Travelers Cos. beat analysts’ estimates. Industrial users account for 29 percent of U.S. gas consumption, which has been falling since the recession took hold last year.
“The equity markets are in rally mode,” said Chris Jarvis, president of Caprock Risk Management LLC in Hampton Falls, New Hampshire. “I wouldn’t be surprised that natural gas has put in a bottom. It looks like equities are going to bounce and commodities will rebound.”
Natural gas for February delivery rose 6.5 cents, or 1.5 percent, to $4.555 per million British thermal units at 9:54 a.m. on the New York Mercantile Exchange. The futures fell to $4.377 per million Btu yesterday, the lowest price since Sept. 27, 2006. Gas has declined 19 percent this year. The February contract expires tomorrow.
The Standard & Poor’s 500 Index gained 1.2 percent to 846.17 and the Dow Jones Industrial Average increased 0.9 percent to 8,191.70.
