NEW YORK: US natural gas futures edged up about 1% on Monday on forecasts for more demand this week than previously expected and a continued drop in output as producers reduce drilling activities after gas prices fell to 3-1/2-year lows in February and March.

Gas prices increased despite forecasts for milder weather and lower demand next week than previously expected, negative spot power and gas prices in parts of Texas, California and Arizona over the past few weeks and ample amounts of gas in storage.

Front-month gas futures for May delivery on the New York Mercantile Exchange rose 1.1 cents, or 0.6%, to $1.796 per million British thermal units (mmBtu) at 8:13 a.m. EDT (1213 GMT).

With gas prices up for a second week in a row last week, speculators cut their net short futures and options positions on the New York Mercantile and Intercontinental Exchanges for a sixth week in a row to their lowest since late January, according to the US Commodity Futures Trading Commission’s Commitments of Traders report.—Reuters

Copyright Business Recorder, 2024