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Weather Forecasts Promise Hot Summer, Help Natural Gas

June 20, 2016 at 15:41 by Vladimir Vyun

Prices for natural gas climbed to the highest level this year due to the outlook for hot weather in summer. Weather forecasts (including the three-month forecast from the National Weather Service) showed that above-norm temperatures will persist in many parts of the United States throughout the most part of summer. Demand for gas usually increases during hot weather due to higher usage of air conditioning.

Natural gas also likely got boost from the improving market sentiment that had bolstered crude oil and many other commodities.

Traders wait for the supply report from the US Energy Information Administration. Last week, it showed a build-up of 69 billion cubic feet.

July futures for natural gas jumped as much as 3.77% to $2.72 per million British thermal units as of 15:36 GMT on NYMEX today.

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