Prices of natural gas in USA may rise with further drop in temperatures

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The futures of natural gas rose as the traders focused on short-term forecasts for cold weather. Private forecaster Commodity Weather Group is predicting that cold weather along the west coast will move over to the Midwest over the next 6 to 10 days. These are regions in the USA where natural gas remains in high demand for home heating and with the fall in temperature its demand rises; boosting the prices.

"Natural gas has gotten a boost in recent days because of the cold weather", said energy analyst, Price Futures Group, Phil Flynn. He also stated that there is a possibility of short term demand for natural gas, which is going to be strong and extremely favorable.

Another supporting factor is the nuclear-generating power plants, which are expected to shut down for maintenance work. This will also lead to a rise in demand for plants run by natural gas, this winter.

However, the demand may not satisfactorily meet with the supply as storage estimate calculated by industry analysts is totaling up to 2.405 trillion cubic feet, which is 9 per cent below last year's level.

Story first published: Thursday, February 21, 2013, 13:30 [IST]
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