U.S. natural gas settles higher in an up-and-down session, again testing the key $3 level as prospects for heating demand pick up. Current winter forecasts call for average temperatures 2 degrees Fahrenheit below last year for the December-February period, which could add around 2.8 billion cubic feet a day to residential and commercial demand, Bank of America’s Francisco Blanch says in a report.
“The forward strip and spot prices should rise if colder year-on-year winter weather forecasts are realized,” although “producers are waiting for higher prices to deliver several Bcf/d of production held back,” he adds. Nymex gas for December settles up 0.8% at $2.998/mmBtu after hitting an intraday high of $3.058.