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Jan. 11 (Bloomberg) -- Natural gas futures climbed for the first day in five in New York on rising oil prices and revised forecasts for colder weather in the Midwest, which may boost demand for the heating fuel.
Gas rose as much as 1.7 percent as temperatures may be below-normal in the Midwest from Jan. 22 through Jan. 24, said Matt Rogers, the president of Commodity Weather Group in Bethesda, Maryland. Gas traders were also tracking crude oil, which climbed as much as 2.3 percent.
“The noon forecast updates came out, and natural gas is following the weather,” said Stephen Schork, president of the Schork Group Inc., an energy advisory company in Villanova, Pennsylvania. “Oil is also breaking out to the upside right now, and gas is along for the ride.”
Natural gas for February delivery rose 5.5 cents, or 1.3 percent, to $4.454 per million British thermal units at 1:53 p.m. on the New York Mercantile Exchange. The futures have declined 18 percent from a year ago.
Crude oil reached an intraday high of $91.33 a barrel after the closure of the Trans Alaska Pipeline System threatened to reduce supplies to refiners and analysts predicted a drop in stockpiles.
Temperatures may be 10 to 15 degrees Fahrenheit below normal in the Midwest from Jan. 22 through Jan. 24, Commodity Weather Group’s Rogers said. Earlier forecasts had shown milder weather. The National Weather Service releases updates to its weather models beginning at 11 a.m. in Washington.
’Impressive’ Cold
"The models showed an additional arctic cold push," Rogers said. "The cold does look transient, but it’s impressive."
The low temperature in Chicago on Jan. 22 may be 2 degrees Fahrenheit (minus 17 Celsius), 14 degrees below normal, according to AccuWeather Inc. in State College, Pennsylvania. The low in Detroit may be 7 degrees, 10 below normal.
About 52 percent of U.S. households use natural gas for heating, according to the Energy Department.
Energy Department data scheduled for release on Jan. 13 may show a larger-than-average withdrawal from gas inventories after frigid weather last week in the eastern and central U.S., analysts predicted. The department may say stockpiles fell by 150 billion cubic feet, according to the median of 10 analyst estimates compiled by Bloomberg News.
The five-year average withdrawal is 108 billion, according to Tim Evans, an energy analyst with Citi Futures Perspective in New York.
Inventories as of Dec. 31 totaled 3.097 trillion cubic feet, 6.5 percent above the five-year average, the Energy Department said.
The department cut its 2011 U.S. natural gas production forecast by 1 percent today. Gas output will average 61.38 billion cubic feet a day, down from 62.01 billion estimated in December, the department said in its monthly Short-Term Energy Outlook.
Gas rose as much as 1.7 percent as temperatures may be below-normal in the Midwest from Jan. 22 through Jan. 24, said Matt Rogers, the president of Commodity Weather Group in Bethesda, Maryland. Gas traders were also tracking crude oil, which climbed as much as 2.3 percent.
“The noon forecast updates came out, and natural gas is following the weather,” said Stephen Schork, president of the Schork Group Inc., an energy advisory company in Villanova, Pennsylvania. “Oil is also breaking out to the upside right now, and gas is along for the ride.”
Natural gas for February delivery rose 5.5 cents, or 1.3 percent, to $4.454 per million British thermal units at 1:53 p.m. on the New York Mercantile Exchange. The futures have declined 18 percent from a year ago.
Crude oil reached an intraday high of $91.33 a barrel after the closure of the Trans Alaska Pipeline System threatened to reduce supplies to refiners and analysts predicted a drop in stockpiles.
Temperatures may be 10 to 15 degrees Fahrenheit below normal in the Midwest from Jan. 22 through Jan. 24, Commodity Weather Group’s Rogers said. Earlier forecasts had shown milder weather. The National Weather Service releases updates to its weather models beginning at 11 a.m. in Washington.
’Impressive’ Cold
"The models showed an additional arctic cold push," Rogers said. "The cold does look transient, but it’s impressive."
The low temperature in Chicago on Jan. 22 may be 2 degrees Fahrenheit (minus 17 Celsius), 14 degrees below normal, according to AccuWeather Inc. in State College, Pennsylvania. The low in Detroit may be 7 degrees, 10 below normal.
About 52 percent of U.S. households use natural gas for heating, according to the Energy Department.
Energy Department data scheduled for release on Jan. 13 may show a larger-than-average withdrawal from gas inventories after frigid weather last week in the eastern and central U.S., analysts predicted. The department may say stockpiles fell by 150 billion cubic feet, according to the median of 10 analyst estimates compiled by Bloomberg News.
The five-year average withdrawal is 108 billion, according to Tim Evans, an energy analyst with Citi Futures Perspective in New York.
Inventories as of Dec. 31 totaled 3.097 trillion cubic feet, 6.5 percent above the five-year average, the Energy Department said.
The department cut its 2011 U.S. natural gas production forecast by 1 percent today. Gas output will average 61.38 billion cubic feet a day, down from 62.01 billion estimated in December, the department said in its monthly Short-Term Energy Outlook.
