Natural gas futures in the United States increased to a three-week high Monday as meteorologists are predicting colder-than-average temperatures for the upcoming week.
On the New York Mercantile Exchange, natural gas delivery for December was up 1.82%, or 4.3 cents, to $2.404 per million British thermal units. Earlier in the day, futures rose to $2.460, which was the highest level seen since October 21.
Natural gas prices jumped up 10.1 cents (4.47%) on Friday as colder forecasts and shrinking storage injection bolstered prices.
The EIA (Energy Information Administration) announced on Friday that natural gas supplies in storage increased 49 billion cubic feet last week, which was far below the expected increase of 51 billion cubic feet.
In the previous week, builds were at 52 billion cubic feet, and 40 billion cubic feet during the same week in 2014.
Altogether, natural gas storage in the United States was at 3.978 trillion cubic feet, an all-time high and nearly 10% higher than the average levels seen this time last year.
Updated weather forecasts that were released on Friday show cooler-than-expected temperatures the next two weeks in the Midwest and Southeast, which will give early-winter heating demand a boost. The heating season lasts from November through March, which are the peak months for natural gas consumption in the United States.