Natural-gas prices rose to an eight-month high Monday as traders anticipated colder-than-average weather spreading across the Midwest in the next few weeks.
Futures for November delivery gained 3.9% to $3.267 a million British thermal units on the New York Mercantile Exchange, their highest close since Jan. 25.
Prices have rallied in recent weeks as storage levels have stayed below average ahead of the winter heating season. As of Sept. 28, the amount of natural gas in storage is 17.5% below the five-year average for this time of year.
Meanwhile, weather forecasts show a wave of lower-than-average temperatures across the central U.S. in the 6- to 10-day forecast.
“Prices continue to feel the pressure of the impending winter,” analysts at Gelber & Associates said.
Analysts also noted that production levels have stayed below all-time records in recent weeks as producers await the approval of another key pipeline to transport natural gas out of Appalachia.
Write to Stephanie Yang at [email protected]