NEW YORK: US spot natural gas prices rose at nearly every price point on Tuesday with intense heat in the west likely to increase cooling demand in the region.
California's power grid operator urged customers in the northern part of the state to conserve energy for a second day on Tuesday as residents cranked up air conditioners to escape a heat wave blanketing the region.
Prices for Wednesday delivery at the South California border <NG-P-CAL> rose 7 cents to $3.91 per million British thermal units, one of the highest prices on the day, according to ICE data.
At Henry Hub <NG-W-HH>, the benchmark supply point in Louisiana, prices rose six cents to $3.58. Late deals were 4 cents under the front month futures contract, down from 3 under on Monday. The price was below the July monthly index of $3.71.
NYMEX futures rose 7.5 cents, more than 2 percent, to $3.652 in late trade on Monday.
In major consuming regions, prices on the Transco pipeline at the New York citygate <NG-NYCZ6> rose 4 cents to $3.71 per million British thermal units. In Chicago <NG-CHGC>, prices rose 4 cents to $3.63.
US natural gas inventories are expected to have increased by 71 billion cubic feet on average last week, a Reuters poll of industry traders and analysts showed on Tuesday.
The US Energy Information Administration will release its weekly gas storage data for the week ended June 28 one day early, on Wednesday at 12:00 p.m. EDT (1600 GMT), due to the US July 4 holiday on Thursday.
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