Natural gas soars to four-month high as cold weather forecast for U.S.

Today, the price of natural gas climbed to its highest point in nearly four months after U.S. weather forecasters expect unseasonably cold weather, sending heating systems into overdrive and increasing demand for the energy source.Today, the price of natural gas climbed to its highest point in nearly four months after U.S. weather forecasters expect unseasonably cold weather, sending heating systems into overdrive and increasing demand for the energy source.

The National Weather Service decreased its temperature forecasts for states on the east coast from December 11 to December 15, rattling the markets and sending natural gas soaring. Up until that point, gas prices were at some of their lowest levels since 2002. Brad Florer, a trader at Kottke Associates Inc., contends that "cold weather is the primary driver of gas prices," affirming that below-normal "temperatures are going to hang on for most of the month."The National Weather Service decreased its temperature forecasts for states on the east coast from December 11 to December 15, rattling the markets and sending natural gas soaring. Up until that point, gas prices were at some of their lowest levels since 2002. Brad Florer, a trader at Kottke Associates Inc., contends that "cold weather is the primary driver of gas prices," affirming that below-normal "temperatures are going to hang on for most of the month."

This morning on the New York Mercantile Exchange, natural gas for January delivery increased 3.5 percent, or 15.3 cents, to $4.502 per million British thermal units. During the day, it reached an intraday high of $4.525 - its highest price since the beginning of August - before retreating.This morning on the New York Mercantile Exchange, natural gas for January delivery increased 3.5 percent, or 15.3 cents, to $4.502 per million British thermal units. During the day, it reached an intraday high of $4.525 - its highest price since the beginning of August - before retreating.

Nearly 52 percent of U.S. households use natural gas for heating. Gas inventories are still high, but "this is a more weather-driven market," Kyle Cooper, director of research for IAF Advisors, asserted. Nearly 52 percent of U.S. households use natural gas for heating. Gas inventories are still high, but "this is a more weather-driven market," Kyle Cooper, director of research for IAF Advisors, asserted.