Natural gas rose in New York after forecasts for above-normal temperatures, with extreme heat predicted for parts of the U.S., bolstering air-conditioning demand for the power-plant fuel. The National Weather Service said excessive heat will blanket much of the southern and central plains. Combined with humidity, temperatures will feel as hot as 115 degrees Fahrenheit (46 degrees Celsius) in some places. “It’s hot out for the next three weeks, and we’re not seeing any relief,” said Teri Viswanath, director of commodities research at Credit Suisse Securities USA in Houston. Natural gas for September delivery rose 1.5 cents, or 0.3 percent, to $4.654 per million British thermal units at 9:28 a.m. on the New York Mercantile Exchange. Prices have risen 16 percent from a year ago. Electricity use for air conditioning will be 33 percent above normal tomorrow throughout the U.S., and will stay above normal through Aug. 11, David Salmon, a meteorologist with Weather Derivatives of Belton, Missouri, said in a daily report. Demand in the Northeast will be 76 percent above normal tomorrow. Temperatures may reach 90 degrees in New York today, compared with an average high of 84. Temperatures in Washington may rise as high as 92 degrees. Gas inventories will increase by 31 billion cubic feet the week ended July 30, according to the median of 10 analyst estimates compiled by Bloomberg. Supplies rose 28 billion cubic feet to 2.919 trillion in the week ended July 23, according to an Energy Department report on July 29. The surplus to the five- year average dropped to 8.9 percent from 9.9 percent a week earlier. The Department’s next report is due tomorrow. -- With assistance from Timothy Homan in Washington. Editors: Bill Banker, Charlotte Porter To contact the reporter on this story: Asjylyn Loder in New York at aloder@bloomberg.net.

Source