FOX: U.S. GAS: Futures Gain As Hot Weather Persists
Natural gas futures rose Thursday, aiming at fresh six-month highs as still-sizzling temperatures across much of the U.S. are expected to keep demand for the fuel high at gas-fired utilities.
Natural gas for August delivery recently traded 3.9 cents, or 1.4%, higher at $2.938 per million British thermal units on the New York Mercantile Exchange.
Temperatures are expected to remain well above average from Chicago to New York through the weekend, with highs above 90 degrees Fahrenheit in several major cities. The hot weather is raising air conditioning usage among consumers and businesses, keeping demand for natural gas strong as utilities churn out electricity.
"The market remains well supported by the ongoing intensity of this week's heat," said Jim Ritterbusch, head of energy-trading adviser Ritterbusch & Associates, in a client note.
After slumping below $2/MMBtu in April, natural gas prices are nearing $3 after a rally of 17% in June. Utility demand has been rising due to switching to natural gas from more expensive coal.
Traders on Thursday will also begin looking ahead to weekly data due Friday on U.S. natural gas inventories, delayed one day by the Independence Day holiday.
U.S. stockpiles stand at 3.006 trillion cubic feet, 27% above the level seen this time last year and 25% above the five-year average.
Natural gas for next-day delivery at the benchmark Henry Hub in Louisiana recently traded at $2.91/MMBtu, according to IntercontinentalExchange, compared with the average of $2.7781/MMBtu in the previous session. Natural gas for next-day delivery at Transcontinental Zone 6 in New York traded at $3.23/MMBtu, up from $2.9966/MMBtu.
Write to Jerry A. DiColo at jerry.dicolo@dowjones.com
