Natural Gas Advances to Five-Week High on Stockpile Outlook

September 5, 2013 10:00 AM
 

Sept. 5 (Bloomberg) -- Natural gas futures rose to a five- week high for a second day in New York on speculation that government data will show a smaller-than-normal gain in inventories of the power-plant fuel.

Gas climbed as much as 1 percent. An Energy Information Administration report scheduled for release at 10:30 a.m. in Washington may show stockpiles increased by 54 billion cubic feet in the week ended Aug. 30, according to the median of 25 analyst estimates compiled by Bloomberg. The five-year average gain for the period is 60 billion.

"It was hot in the Midwest last week and that’s why some people are looking for numbers between 45 and 50," said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. "Prices are stabilizing and moving higher. The rally has a little bit more ahead of it."

Natural gas for October delivery rose 2.8 cents, or 0.8 percent, to $3.711 per million British thermal units at 9:09 a.m. on the New York Mercantile Exchange. Trading volume was 34 percent below the 100-day average for the time of day. Prices are up 11 percent this year. The futures touched $3.719, the highest level since July 25.

 

--Editors: Charlotte Porter, Margot Habiby

 

To contact the reporter on this story: Christine Buurma in New York at cbuurma1@bloomberg.net;

 

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

 

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