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Cold Weather Forecasts Result in Gains for Natural Gas

February 10, 2015 at 20:17 by Vladimir Vyun

Not every commodity on the energy market demonstrated losses today. Unlike crude oil, natural gas rallied during the current session for the second consecutive day. As it usually happens, prices were driven by weather outlook.

Snowfall in the US Northeast prompted traders to buy natural gas in hopes that cold weather will result in higher demand for the heating fuel. Forecasters predict that low temperatures will make way to other regions of the United States.

Prices were falling previously due to expectations of warmer weather in the second half of February. There is still a negative factor for the commodity in the form of ample supply that endangers the current rally.

March futures for delivery of natural gas jumped as much as 3.23 percent to $2.68 per million British thermal units as of 20:14 GMT on NYMEX today after prices rallied 0.7 percent during the previous trading session.

If you have any questions and comments on the commodities today, use the form below to reply.

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