NatGas Climbs On Forecast For Colder Weather
BY BLOOMBERG NEWS-Investors Business Daily-December 15,2014
Natural gas futures rose the most in more than three weeks as weather forecasts for the end of the month turned colder, signaling higher demand for the heating fuel.
Temperatures in the central and eastern U.S. later this month will be lower than previously predicted, according to WSI Corp. in Andover, Mass. The low in Boston on Dec. 21 may be 25 degrees Fahrenheit (minus 4 Celsius), 1 below normal, according to AccuWeather, of State College, Pa.
“It looks like the weather forecasts have turned a bit colder for the second half of December in the eastern part of the U.S.,” said John Kilduff, partner at Again Capital LLC and editor of the Energy Over-View newsletter in New York. “It’s enough to engender some buying, given how much we have fallen off.”
Natural gas for January delivery advanced 16.1 cents, or 4.4%, to settle at $3.795 per million British thermal units on the New York Mercantile Exchange, the biggest one-day gain since Nov. 17.
Futures traded higher “as expectations of a cold finish to the month spurs buying,” Teri Viswanath, director of commodities strategy at BNP Paribas SA in New York, said in a note to clients. Forecasts will probably show below-normal temperatures in the 11- to 15-day period, with cold weather sweeping northcentral states, she said.
Temperatures may be lower than average in January, according to Commodity Weather Group LLC. About 49% of U.S. households use gas for heating, EIA data show.
It appears that “Old Man Winter” will be giving a boost to our many clients, in the energy sector, this season!