MTECHTIPS-U.S. natural gas futures pushed higher for the second day in a row on Tuesday, climbing to a one-week high as colder-than-normal temperatures are seen hitting the U.S. East Coast next week.
Natural gas for December delivery on the New York Mercantile Exchange rose by as much as 2.7% earlier to a daily peak of $2.822 per million British thermal units. It was last at $2.808 by 10:20 AM ET (15:20 GMT), after rallying 13.0 cents, or 4.96%, the day before, the biggest one-day gain since July. Updated forecasting models showed a weather system pushing into the western U.S. later this week, which will then track toward the eastern U.S. next weekend, bringing rain, snow, and cooler than normal temperatures along with it. Natural gas prices typically rise ahead of the winter as colder weather sparks indoor-heating demand. Meanwhile, market participants awaited weekly supply data due on Thursday, which is expected to show a build in a range between 21 and 30 billion cubic feet in the week ended November 11. That compares with a gain of 54 billion cubic feet in the preceding week, 15 billion a year earlier and a five-year average build of 3 billion cubic feet.