NEW YORK: US natural gas futures climbed about 2% on Wednesday after dropping to a nine-month low in the prior session on forecasts for slightly cooler weather and higher heating demand over the next two weeks than previously expected.
Energy traders also noted output was on track to decline for a third day in a row on Wednesday after recovering by the weekend most of what was lost during the mid-January Arctic freeze.
That Arctic freeze boosted gas demand to a daily record high and cut both US gas output and feedgas to liquefied natural gas (LNG) exports plants to one-year lows.
Analysts said prices were up even though the weather will remain warmer than normal through at least mid-February, keeping heating demand lower than usual for this time of year, and with the shutdown of a liquefaction unit ongoing at US energy firm Freeport LNG’s export plant in Texas.
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