Natural gas futures traded near a four-month high in New York on speculation that a blast of cold air will spur heating demand.
The Great Plains through the East Coast will see “an impressive cold surge next week” with below-normal temperatures lasting through Nov. 20, said Commodity Weather Group LLC. A government report today may show that gas stockpiles rose by 86 billion cubic feet last week, a record for the period, based on the median of 24 analyst estimates compiled by Bloomberg.
“We are seeing investors accumulate length ahead of this very cold November breakout in the weather,” said Teri Viswanath, director of commodities strategy at BNP Paribas SA in New York. “Despite an anticipated blowout injection season finale, we think any weakness might be short-lived.”
Natural gas for December delivery fell 1.7 cents, or 0.4%, to $4.177 per million British thermal units at 9:31 a.m. on the New York Mercantile Exchange. Volume for all futures traded was 14 percent higher than the 100-day average. Prices yesterday closed at $4.194, the highest settlement since July 8.