Natural gas rose the most in four months on speculation

Natural gas rose the most in four months on speculation that one morning the Department of Energy report showed that stockpiles rose less than the average of five years, eroding a surplus of inventory.

The Energy Department can say that the increased supply 8 billion cubic feet last week, according to the median of 22 analyst estimates compiled by Bloomberg. The five-year average gain for the week is 18 million dollars.

"Rising temperatures are low, and there is the possibility that tomorrow may report a net withdrawal from storage," said Teri Viswanath, director of commodity research at Credit of U.S. Securities Suisse in Houston, who estimated that inventories fell by 5 per thousand cubic feet.

Natural gas for December delivery rose 21.2 cents, or 5.6 percent, to settle at 04.03 dollars per million British thermal units on the New York Mercantile Exchange, the biggest increase in a day since July 15 when for delivery in future months rose almost 6.5 percent to $ 4,586.

Of gas has fallen 28 percent this year, inventories reached record levels. Inventories rose 19 billion cubic feet in the week ended Nov. 5 to 3.84 trillion cubic feet, the Energy Department said last week.

U.S. is nearing the end of the shoulder before making the demand for heating as temperatures drop. About 52 percent of U.S. households the use of natural gas for heating.

Coldest in the forecast

Forecasters call for below normal temperatures in the 11 - to 15-day outlook, reinforcing the demand for fuel. Below-normal temperatures will cover the East Coast from Florida to Maine, commodities Weather Group led by Matt Rogers said in a report released today.

"In any event, the outlook today is looking colder than the eastern half of the country yesterday," for November 28 through December 2, the weather channel WSI Corp. said in a forecast today.

"What we have is a couple of different things pushing up the price," said Jason Schenker, president of Prestige Economics LLC, an energy consultancy in Austin, Texas. "This is the time and number of this week's inventory."

Cumulative heating degree days increased by seven last week, while injections in stock fell 22 percent, indicating that storage may have already begun their seasonal period of complaints, Viswanath said in a note to clients.

Energy demand

The calorific degree days, calculated by subtracting the average daily temperature of 65 degrees base is designed to show energy demand, according to the National Weather Service. The higher the value, the colder the weather, which means more energy consumption is likely to heat homes and businesses.

Natural gas has been shut down near or above the 50-day moving average of $ 3.80 over the past three days, indicating that level support and attract investment Traders seeking to negotiate prices, said Michael Rose, operations director Angus Jackson Inc. Fort Lauderdale, Florida.

"Natural gas is the only one who did not follow the rest of the enormous bull run in commodities, and people are coming and buying things to consider is cheap," said Rose.

Wholesale natural gas at the benchmark Henry Hub in Erath, Louisiana, gained 11.37 cents, or 3.1 percent, to $ 3.7733 per million BTU in the Intercontinental Exchange.

Volume of gas futures in electronic trading on the Nymex was 270.892 as of 14:38, compared with a three-month average of 266,000. Volume was 227,575 yesterday. The open interest was 781,273 contracts, compared with three-month average of 809,000. The change has a delay of a working day in open interest information and full-volume data.