Natural-gas prices pushed a three-week rally to a new high earlier this week as cooler forecasts continue raising expectations for demand, according to a recent article by Market Watch.
Natural gas for January delivery settled up 6.3 percent, at $3.654 a million British thermal units on the New York Mercantile Exchange, the article states. “Natural gas has surged nearly 40 percent since Nov. 11, sending gas to its highest prices since December 2014,” Market Watch wrote.
“After a historically warm autumn, new forecasts show below-average temperatures spreading across most of the country. About half of all U.S. homes use natural gas for heat, making winter weather typically the market’s biggest driver for demand and often leading to winter price spikes,” the article states.
Some regions have grown much colder than they had been about three weeks ago, changing demand expectations from bearish to bullish, Zane Curry, a gas analyst at Mobius Risk Group told Market Watch. “Everything switched to colder,” said Scott Shelton, broker at ICAP PLC. “It’s going up crazy,” especially in the Northeast.
To read the Market Watch article, click here.
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