Natural gas edges up on cold front hitting Northeast

Stoked by fears that unseasonably cool temperatures in the Northeast would bolster demand, natural gas futures rose to more than $4.00 in New York. Temperatures throughout the Northeast – from New York to Boston – are expected to drop over the next 15 days.Stoked by fears that unseasonably cool temperatures in the Northeast would bolster demand, natural gas futures rose to more than $4.00 in New York. Temperatures throughout the Northeast – from New York to Boston – are expected to drop over the next 15 days.

Most cities will experience temperatures that are three to five degrees lower than they are normally for this time of year. Tom Saal, senior vice president of energy trading at INTL Hencorp Futures, told Bloomberg that the first cold blast of the season normally brings about "a little more heightened anxiety" among investors, causing a surge in the price of natural gas.Most cities will experience temperatures that are three to five degrees lower than they are normally for this time of year. Tom Saal, senior vice president of energy trading at INTL Hencorp Futures, told Bloomberg that the first cold blast of the season normally brings about "a little more heightened anxiety" among investors, causing a surge in the price of natural gas.

For December delivery, natural gas rose 3.1 percent, or 12 cents, to reach $4.057 per million British thermal units around 11 a.m. on the New York Mercantile Exchange. Earlier in the day, prices reached a high of $4.08 before retreating.For December delivery, natural gas rose 3.1 percent, or 12 cents, to reach $4.057 per million British thermal units around 11 a.m. on the New York Mercantile Exchange. Earlier in the day, prices reached a high of $4.08 before retreating.

Prices should realign once the cold spell snaps. The director of energy trading at Angus Jackson Inc., Michael Rose, affirms that there can be a run up in price before cool weather, but once it ends, "we're right back where we started : oversupplied and under-demanded." Gas supplies rose last week up to 3.821 trillion cubic feet according to the Department of Energy.
 Prices should realign once the cold spell snaps. The director of energy trading at Angus Jackson Inc., Michael Rose, affirms that there can be a run up in price before cool weather, but once it ends, "we're right back where we started : oversupplied and under-demanded." Gas supplies rose last week up to 3.821 trillion cubic feet according to the Department of Energy.