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MTECHTIPS:-Natural gas rallies again despite warm weather, supply
Natural gas futures traded sharply higher Tuesday, adding to Monday’s strong gains, as speculation over potential supply cuts overshadowed mild weather and record-high inventory levels.On the New York Mercantile Exchange, natural gas futures for delivery in June traded at USD2.365 per million British thermal units during U.S. afternoon trade, surging 3.52%.Natural gas prices have rallied almost 14% in the past six sessions leading up to Monday, since falling to a ten-year low of USD1.902 on April 19.Sentiment on the heating fuel has improved in recent sessions after prices hit a string of 10-year lows amid speculation that lower prices would lead to production cuts.A report from industry research group Baker Hughes Friday showed that that the number of active rigs drilling for natural gas in the U.S. fell by 18 last week to 613, the lowest since April 2002. The gas rig count is down by almost 35% since peaking at 936 in October.
Natural gas futures traded sharply higher Tuesday, adding to Monday’s strong gains, as speculation over potential supply cuts overshadowed mild weather and record-high inventory levels.On the New York Mercantile Exchange, natural gas futures for delivery in June traded at USD2.365 per million British thermal units during U.S. afternoon trade, surging 3.52%.Natural gas prices have rallied almost 14% in the past six sessions leading up to Monday, since falling to a ten-year low of USD1.902 on April 19.Sentiment on the heating fuel has improved in recent sessions after prices hit a string of 10-year lows amid speculation that lower prices would lead to production cuts.A report from industry research group Baker Hughes Friday showed that that the number of active rigs drilling for natural gas in the U.S. fell by 18 last week to 613, the lowest since April 2002. The gas rig count is down by almost 35% since peaking at 936 in October.
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