natural gas futures brokers

natural gas futures brokers

June 14th, 2016

U.S. natural gas prices remain near 9-month highs

U.S. natural gas futures held near the prior session’s nine-month highs on Tuesday, as forecasts for continued above-normal temperatures across most parts of the U.S. over the next two weeks continued to provide support.

Natural gas for delivery in July on the New York Mercantile Exchange tacked on 1.0 cent, or 0.39%, to trade at $2.594 per million British thermal units by 14:35GMT, or 10:35AM ET.

A day earlier, natural gas futures rallied to $2.635, the most since September 29, as warmer weather lifted cooling demand prospects for the fuel.

Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning.

Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting outlooks on early summer cooling demand.

Meanwhile, traders looked ahead to fresh weekly information on U.S. gas inventories to gauge the strength of demand for the fuel.

The U.S. Energy Information Administration’s storage report slated for release on Thursday is expected to show a build in a range between 60 to 71 billion cubic feet for the week ending June 10.

That compared with builds of 65 billion cubic feet in the prior week, 89 billion a year earlier and a five-year average of 86 billion cubic feet.

Total U.S. natural gas storage stood at 2.972 trillion cubic feet as of last week, according to the U.S. Energy Information Administration, 22.2% higher than levels at this time a year ago and 24.3% above the five-year average for this time of year.

Natural gas prices are up nearly 40% since falling to a 17-year low of $1.611 in early March on expectations of strong summer weather-driven demand for gas-fired electricity generation to meet air-conditioning needs.

Gas use typically hits a seasonal low with spring’s mild temperatures, before warmer weather increases demand for gas-fired electricity generation to power air conditioning.

Elsewhere on the Nymex, crude oil for delivery in July slumped 47 cents, or 0.96%, to trade at $48.39 a barrel, while heating oil for July delivery dropped 1.2% to trade at $1.496 per gallon.