NEW YORK -- Natural gas futures climbed Monday on rising crude oil prices and forecasts of colder weather in the major gas-consuming regions of the U.S.
Natural gas for November delivery on the New York Mercantile Exchange was trading 11 cents, or 2.31%, higher at $4.88 per million British thermal units after opening floor trade 10.8 cents higher at $5.698/MMBtu.
Higher crude oil prices were providing support for gas futures Monday. Natural gas sometimes trades in tandem with crude oil and petroleum products, some of which can be used as substitutes for gas in power plants and heating systems.
"I think the gas market's getting some support with oil going above $73," said Gene McGillian, an analyst with Tradition Energy in Stamford, Conn. "With the approach of winter, the market seems to be keying on to anything that seems supportive."
Nymex light, sweet crude oil for November delivery was trading 17.6 cents higher, or 2.45%, at $73.53 a barrel on rising equities.
Gas futures also were driven higher by forecasts of brisk temperatures in the Northeast and Midwest over the next two weeks. The cooler weather was expected to boost the demand for natural gas for heating.
Physical natural gas for next-day delivery was trading 4 cents higher at $3.95/MMBtu at the benchmark Henry Hub in Louisiana, compared with early Friday, while natural gas for next-day delivery at the Transcontinental Zone 6 in New York was trading 21 cents higher at $4.51/MMBtu, according to the IntercontinentalExchange.
MDA EarthSat, a Rockville, Md., private forecaster, was predicting colder-than-normal temperatures across the Northeast and Midwest this week, with temperatures as much as 16 degrees below normal in some areas. Below-normal temperatures are expected the Northeast, Southeast and Great Lakes regions next week, while colder-than-normal weather should reach the Midwest later in the month, according to MDA EarthSat.
"A week more like Thanksgiving than Columbus Day is on the way for much of the nation from the northern Plains to the Northeast," wrote Joe Bastardi, a meteorologist with AccuWeather.com, in a note to clients Monday.
