Natural gas futures rose amid speculation that hot weather in the U.S. East and South will boost demand for gas-generated electricity.
Temperatures in New York will touch 90 degrees Fahrenheit (32 Celsius) today, 15 degrees higher than normal, according to AccuWeather Inc. Atlanta will have a high of 96 degrees June 1, 13 above normal, according to the forecasting company based in State College, Pennsylvania.
“It’s more like a mid-July cooling load,” said Martin King, senior commodities analyst at FirstEnergy Capital Corp. in Calgary. “It looks like some of this heat might stick around for a while.”
Natural gas for July delivery rose 5.1 cents, or 1.1 percent, to $4.569 per million British thermal units in electronic trading on the New York Mercantile Exchange. Floor trading was closed for the Memorial Day holiday in the U.S.