Cooler Weather Forecasts Send Natural Gas Higher
U.S. natural-gas futures reversed a long side to climb to their highest since November 08th on Monday, as weather forecasts showed patches of normal and below-normal temperatures across the East.
Futures for December delivery recently gained nearly 5% to $2.775 a million British thermal units on the New York Mercantile Exchange, as investors bet that a cooler weather will provide a boost in demand that help deplete record inventory levels of natural gas.
The Energy Information Administration last Thursday reported that U.S. natural-gas supplies climbed to a record 4.017 trillion cubic feet for the week ended November 04th.
About half of all U.S. homes use natural gas for heat, thus the fuel market’s movements in the winter are often determined by the amount of cold in weather forecasts.
Buy Stop at 2.760, Take profit at 2.800, Stop loss at 2.740