Investing.com – U.S. natural gas futures rose for the first time in three sessions on Monday, climbing back towards the highest level since January 2015 amid forecasts for unusually warm temperatures across most parts of the continental U.S. in the days ahead.
for delivery in December on the New York Mercantile Exchange tacked on 4.5 cents, or 1.49%, to trade at $ 3.058 per million British thermal units by 10:30AM ET (14:30GMT), not far from last week’s 20-month peak of $ 3.166.
Futures have been well-supported in recent sessions after weather reports suggested more heat and high demand for gas-fired power throughout the end of September.
Despite the recent rally, gains are likely to remain limited as traders react to the reality that higher summer demand for the commodity is coming to an end.
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.
But with autumn having started on September 22, power burns to feed air conditioning demand have probably peaked for now, market analysts said.
Total U.S. natural gas in storage currently stands at 3.551 trillion cubic feet, according to the U.S. Energy Information Administration, 4.0% higher than levels at this time a year ago and 7.5% above the five-year average for this time of year.
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