Futures Pros – Natural gas futures advanced for the second consecutive day on Tuesday, rising to hit a 2-day high, as an upbeat industry forecast overshadowed expectations for warmer weather in the U.S.
On the New York Mercantile Exchange, natural gas futures for December delivery rose to USD 3.880 per million British thermal units during European afternoon trade, gaining 0.67%.
It earlier rose to USD 3.918 per million British thermal units, its highest price since November 12.
Natural gas prices were boosted after the U.S. Natural Gas Supply Association said in its annual winter forecast that natural gas demand in the U.S. was expected to be 2.4% higher this winter, compared to last year’s winter season.
Total U.S. natural gas demand this winter was expected to rise to an average of 79.8 billion cubic feet per day, up from 77.9 billion cubic feet per day last year.
But gains were limited after the Commodity Weather Group said that temperatures were expected to be above average in the Northeast and Midwest during the week of November 22 to November 26.
According to the weather group, New York was expected to have a high of 60 degrees Fahrenheit (16 Celsius) on November 23, nine degrees above normal.
The U.S. Northeast is a key gas-consuming area. Warmer temperatures decrease the need for gas-fired electricity to heat homes, reducing demand for natural gas.
