NEW YORK: US natural gas futures climbed about 2% to a fresh 16-week high on Monday on a decline in output and as high amounts of feedgas keep flowing to liquefied natural gas (LNG) export plants.
Keeping that price increase in check, however, were bearish forecasts for less demand over the next two weeks than previously expected and the tremendous amount of surplus gas still in storage.
Analysts projected there was currently about 29% more gas in storage than usual for this time of year.
Front-month gas futures for June delivery on the New York Mercantile Exchange rose 4.8 cents, or 1.8%, to $2.674 per million British thermal units (mmBtu) at 9:12 a.m. EDT (1312 GMT), putting the contract on track for its highest close since Jan. 26 for a third day in a row.
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