NEW YORK: US natural gas futures climbed about 3% to a one-week high on Tuesday on forecasts for colder weather and higher heating demand over the next two weeks than previously expected.
Energy traders also noted that futures were supported by a continued drop in US output after gas prices collapsed to a 3-1/2-year low in February.
Front-month gas futures for April delivery on the New York Mercantile Exchange rose 4.80 cents, or 2.8%, to $1.751 per million British thermal units (mmBtu) at 8:37 a.m. EDT (1237 GMT), putting the contract on track for its highest close since March 11.
Prices fell as low as $1.511 per mmBtu on Feb. 27, their lowest since June 2020, as near-record output, mostly mild weather and low heating demand this winter allowed utilities to leave significantly more gas in storage than usual for this time of year.
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