MTECHTIPS;-U.S. natural gas futures move away from 3-month lows

MTECHTIPS;-U.S. natural gas futures move away from 3-month lows

MTECHTIPS-U.S. natural gas futures were higher on Wednesday, moving away from three-month lows touched earlier this week as weather forecasting models turned warmer, which should boost demand in the weeks ahead. U.S. natural gas for July delivery was at $2.931 per million British thermal units by 8:55 AM ET (1255 GMT), up 2.4 cents, or around 0.8%. Prices of the fuel ended higher on Tuesday, snapping a two-session losing streak after sliding to the lowest since March 17 at $2.877 at the start of the week. Wednesday marks the official start of summer and with it brings impressive heat over the Southwest, while far from impressive conditions over the Midwest and East. Late in the week, warm to hot conditions will return over the Great Lakes and East with highs back into the 80 s to lower 90 s. Although, yet another cool shot will push into the north-central U.S. this weekend and then across the East next week. Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting outlooks on summer heating demand. Gas use typically hits a seasonal low with spring’s mild temperatures, before warmer weather increases demand for gas-fired electricity generation to power air conditioning. Nearly 50% of all U.S. households use gas for heating.

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