By Christine Buurma on November 13, 2012
Natural gas climbed more than 4 percent in New York, heading for the biggest gain in six weeks, on speculation that U.S. inventories will drop for the first time this season as below-normal temperatures spur fuel demand.
Gas rose as much as 4.7 percent. Government data on Nov. 15 may show that stockpiles fell 15 billion cubic feet last week to 3.914 trillion, according to Donald Murry, an economist at C.H. Guernsey & Co. in Oklahoma City. That would be the earliest seasonal decline since 2007. Prices rose to a 10-month high of $3.82 per million British thermal units on Oct. 30.
“A withdrawal from inventories would tell the market that winter is already here,” said Tom Saal, senior vice president of energy trading at INTL Hencorp Futures LLC in Miami. “We’re obviously seeing colder weather than what people remember from the latter part of last year.”