Natural gas rose for a second day in New York

Natural gas rose for a second day in New York on forecasts of below-normal temperatures in the eastern U.S. that can increase demand for fuel.

Gas futures gained as much as 2.3 percent as the weather can be colder than normal in the east coast and the Great Lakes region from December 27 through January 2, according to the National Weather Service . Earlier forecasts had shown above-normal temperatures in New England during that period.

"It seems we'll have another attack of cold," said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. "I think the market has found support at $ 4 after last week flush and seems to be recovering a little."

Natural gas for January delivery rose 7.8 cents, or 1.9 percent, to $ 4,144 per million British thermal units at 12:24 in the New York Mercantile Exchange after climbing to $ 4,158. Futures have dropped 26 percent this year.

The low temperature in New York on December 27 can be 26 degrees Fahrenheit (-3 degrees Celsius), three degrees below normal, according to AccuWeather Inc. in State College, Pennsylvania. The low temperature in Chicago may be 15 degrees Celsius, four degrees below normal.

"Next week it has tended most coldest day this more general, temperatures below normal expectations," said Stephen Strum, president of Frontier time in Tulsa, Oklahoma, in a note to customers today.

Heating increased demand

heating demand in the U.S. can be 18 percent above normal for December 26 through December 30, according to Weather Derivatives in Belton, Missouri.

There may be storms in "Christmas and New Year then" on the east coast, according to Time Commodity Group LLC in Bethesda, Maryland.

About 52 percent of U.S. households the use of natural gas for heating, according to the Department of Energy.

Gas also rose on speculation a rebound in U.S. economy boost industrial demand.

Data scheduled for release on December 22 will probably show U.S. Gross domestic product grew 2.8 percent in the third quarter, versus a previous estimate of 2.5 percent.

The Thomson Reuters / Jefferies CRB Index of 19 commodities gained 0.8 percent to 323.07.

The Energy Department reported last week that 164 million cubic feet of gas were withdrawn from the inventories for the week ending 10 December, above the five-year average decline of 153 million dollars. Total stocks 3561000000000 cubic feet, 1 percent below last year's level and 9.9 percent above the five year average.

gas reserves will reach 1.833 trillion cubic feet at the end of the winter season in March, about 171 million cubic feet higher than at the end of March 2010, the Energy Department said on 7 December in its report Monthly short-term Energy Outlook.