Investing.com – U.S. natural gas futures rose to almost two week highs on Monday as forecasts for cooler temperatures bolstered the demand outlook for the home heating fuel.
Natural gas rises to almost 2-week highs
On the New York Mercantile Exchange, natural gas futures for delivery in November were last up 1.01% to $4.070 per million British thermal units.
Updated weather forecasting models called for cooler temperatures in the Midwest and eastern U.S. later this week and going into the weekend.
Natural gas prices received an additional boost from the rollover to the November contract, after the October contract expired on Friday.
Natural gas futures have repeatedly tested the $4 level this month ahead of the approaching peak winter home-heating demand season.
Extreme cold in the eastern U.S. last winter saw natural gas prices rise above the $6 per million British thermal units level and reduced inventories to their lowest levels in 11 years in the early part of this year.
Since then, suppliers have been rapidly rebuilding storage levels amid a boom in domestic shale gas production.
The U.S. Energy Information Administration said in its report last week that natural gas storage in the U.S. rose by 97 billion cubic feet in the week ended September 19, up from 90 billion in the previous week and ahead of expectations of 93 billion cubic feet.
Elsewhere on the Nymex, crude oil for delivery in November was up 0.11% to $93.64 a barrel, while heating oil for November delivery was almost unchanged at $2.70.20 per gallon.