Natural Gas Rises In Wake Of Long-Term Weather Forecast
Last week natural gas opened at 3.907 and was then followed by a week of ups and downs. On Wednesday it fell as low as 3.848 before the price began its steady recovery and finally closing on Friday at 4.029.
The prices changed as updated weather-forecasting models predicted mild temperatures in the coming days which should lead to a reduction in the use of both air conditioning and heating. At the same time, long term models predicted significant cooling in the eastern US later in October. Furthermore, the Energy Information Administration reported that US natural gas storage rose by 97 billion cubic feet last week.
If the long term weather forecasting models continue to predict colder weather at the end of next month, then it is highly likely that the price of natural gas will continue to rise next week.