Natural Gas On A Winning Streak
News Article by: TNT
U.S. natural gas futures have capped the longest winning streak since 2014 as weather forecasts turn colder.
Natural gas has surged 36 percent from a 16-year intraday low in December as a cold spell boosts fuel demand, depleting stockpiles. Still, supplies from shale wells have left inventories at a seasonal record, stoking concern that the rally will lose steam as spring approaches.
“Prices have room to move higher,” said Santiago Diaz, an energy trading associate at FCStone Latin America LLC in Miami. “The weather looks like it’s going to be colder. We’re probably going to see some pretty big withdrawals from storage over the next couple of weeks.”
A forecast released early last week by the U.S. Energy Information Administration predicts natural gas prices will rise more than 60 percent over the next two years, averaging $2.65 per million British thermal units, or MMBtu, this year and $3.22 in 2017.