US Natural Gas Prices Rise with Unseasonably Warm Weather
US natural gas futures rose for the fourth consecutive week due to unseasonably warm weather that boosted cooling demand. The front-month contract on the New York Mercantile Exchange settled 2.1% higher at $2.975 per million British thermal units (mmBtu) for October delivery.
The increase was driven by above-average temperatures in parts of the Midwest and eastern US, which kept power generators burning more gas than usual to keep air conditioners running. About 40% of US power generation comes from gas-fired plants.
Analysts at Gelber & Associates noted that the gradual uptrend of the past month could continue in the coming weeks due to the persistence of hot temperatures, fueled by exceptionally warm Pacific Ocean temperatures according to the UN weather agency.