Natural gas prices jumped Monday on report of below-average cold weather expected across the U.S. at a time when gas supplies are at decade lows.
Natural gas futures for November rose 2.6 percent, to $3.242 per million British thermal units.
"The updated model from over the weekend showed an early-season cold snap for the bulk of the country, which is the last thing consumers needed to have happen," said John Kilduff of Again Capital.
Another analyst said with a maximum cold winter, prices for natural gas could jump above $4, but that seems unlikely. "With natural gas storage levels so low, prices are sensitive to cold this early in the season," said Meisel. "Prices have remained relatively low on record production but these low prices have encouraged far more power burns for electricity. ... This was compounded by the fact we've seen a record number of gas-weighted degree days between April and September.
The amount of natural gas in storage is below the five-year historical range. At 2,956 billion cubic feet, as of Oct. 5, it was slightly higher than the week before but still well below the five-year average.
Source: CNBC
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