(Bloomberg) by Naureen Malik – Natural gas futures advanced to the highest price in almost seven weeks in New York as forecasts for unusually warm weather through mid-May signaled increased demand from power generators. The government’s Global Forecast System computer model’s midday run reaffirmed earlier projections for a round of “well-above-normal temperatures” in the Midwest and Northeast into early next week, said Jim Southard, meteorologist with Frontier Weather Inc. in Tulsa, Oklahoma. The 11- to 15-day forecast period turned warmer, with the biggest changes in the Midwest to the Great Plains, he said. Gas deliveries to electricity producers have climbed as companies and homeowners turned on their air conditioners. Shipments rose 1.5 percent Monday from May 1, according to LCI Energy Insight. Gas prices surged last week after a smaller-than-forecast U.S. stockpile gain. Bank of American Corp. sees production dropping in 2016, halting a 10-year streak of increases, as drillers make cuts at oil fields and demand rises. “The temperatures are starting to warm up in the Midwest so maybe we see a summer this year and the market should firm up,” said Phil Flynn, senior market analyst at Price Futures Group in Chicago. “Last week when we saw injection … continue reading
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Source: CTRM Center