Natural gas rises to 17-month high as cold snap extends to April

Posted 3/18/13

NEW YORK - Natural gas climbed to its highest price in almost 17 months in New York on speculation that a cold start to spring will buoy demand for heating fuels.

Gas rose as much as 2.4 percent as MDA Weather Services predicted below-normal temperatures will linger in most of the lower 48 states through April 1. The futures have rallied 25 percent from a one-month low on Feb. 15 as unusually cold weather helped reduce a stockpile glut.

“It doesn’t look like this rally is done yet,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Conn. “The next two weeks they are calling for below-normal temperatures. We are getting early reports we could see three more weeks of withdrawals. In this push up to $4 we have basically seen a lot of shorts run out of the market.”

Gas for April delivery jumped 7.2 cents, or 1.9 percent, to $3.944 per million British thermal units at 9:20 a.m. Monday on the New York Mercantile Exchange after rising to $3.965, the highest intraday price since Oct. 31, 2011. Trading volume was more than double the 100-day average for the time of day. Prices have climbed 18 percent this year.

“We see increased upside risk to our price forecasts of $3.75 per million Btu for the second and third quarters of 2013 and $4.25 per million Btu for 2014,” Goldman Sachs Group Inc. analysts led by Johan Spetz in New York said in an emailed research note.

PBN Hosted

Join PBN for the best networking event and party of the winter - January 15, 2015 - the Book of Lists Party at the Providence Public Library. Reserve your spot by December 31st and get a holiday gift from PBN!
  • Best Places to Work
    Enrollment is now open for the 7th annual Best Places to Work program. Winners w ...
  • Manufacturing Awards
    Applications are now being accepted for the 2nd Annual Manufacturing Awards. Dea ...
Purchase Data
Book of Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  • Purchase an e-File of the entire Book of Lists database
  • Purchase a printed copy of the Book of Lists
    Latest News