Forexpros – Natural gas futures were up on Monday, climbing to a two-day high after forecasts showed significantly warmer-than-normal weather in the U.S. next week, boosting demand expectations for the fuel. On the New York Mercantile Exchange, natural gas futures for July delivery traded at USD4.256 per million British thermal units during U.S. morning trade, gaining 0.35%. It earlier rose as much as 0.55% to trade at USD4.265 per million British thermal units, the highest price since June 23. Industry weather group MDA Federal said on Friday that it expected “unseasonably” hot temperatures to return to the U.S. Great Lakes and mid-Atlantic region next week. In a report, MDA said that the weather “has finally taken a step in the warmer direction after largely trending cooler during the past week.” Meanwhile, the Commodity Weather Group said that temperatures in most Midwestern cities were likely to reach the mid-90s, while most southern U.S. states could see readings exceed 100 degrees Fahrenheit (37 Celsius) through July 2. The ongoing heat should boost cooling demand in the U.S. next week. Industry group Weather Derivatives said that cooling demand in the U.S. was expected to be 10% above normal from June 29 through July 3. Demand for the fuel tends to rise in the summer as warmer-than-normal temperatures increase the need for electricity to power air conditioning. However, gains were limited amid ongoing concerns over rising production levels in the U.S. Industry research group Baker Hughes said on Friday that the number of active rigs drilling for natural gas in the U.S. last week rose to 873 from 870. According to the group, a drop to the 800-to-850 rig range would be necessary to begin to balance the market. Elsewhere, light sweet crude oil futures for delivery in August fell 0.5% to trade at USD90.82 a barrel, while heating oil for August delivery eased down 0.05% to trade at USD2.783 per gallon during U.S. morning trade.

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