Natural gas futures rose to a five-month high on forecasts of colder-than-normal weather that may spark greater demand for the heating fuel.
Gas futures climbed the most since July 15 as temperatures may be as much as 15 degrees below normal in parts of the Midwest from Jan 13. through Jan. 17, according to Commodity Weather Group in Bethesda, Maryland.
"This is simply a reaction to the cold weather," said Mike Rose, director of energy trading at Angus Jackson Inc. in Fort Lauderdale, Florida. "If it continues, it will erode our supplies."
Natural gas for February delivery rose 24.5 cents, or 5.6 per cent, to $4.65 US per million British thermal units the New York Mercantile Exchange, the highest settlement since Aug. 4.
