Natural Gas Up on Expected Demand
Thursday, 22 July 1999
(AP)
NATURAL GAS futures rose to a three-week high Thursday on the
New York Mercantile Exchange as hot temperatures in the Midwest
and Northeast were expected to pump up energy demand.
On other markets, lean hogs and pork bellies closed strong while
grain and soybean futures were mixed following a rally earlier in the
week.
Natural gas futures prices advanced more than 6 percent as several
Midwestern states issued heat advisories, with air conditioners and
fans working overtime. Electric utilities often fire up their natural gas
units in times of peak demand.
August natural gas rose 1.42 cents to $2.395 for each 1,000 cubic
feet, its highest level since June 30, when it traded at $2.420.
Crude oil futures also staged a moderate recovery Thursday as
Venezuela's energy and mines minister announced that OPEC and
non-OPEC oil producers were at between 93 percent and 95 percent
compliance with their accord to reduce oil supply.
Nigerian officials also backed away from a statement earlier this
week that the country planned to increase its oil output by 215,000
barrels a day. A Nigeria National Petroleum Corp. official said the
report was not true.
Tim Evans, an analyst with Pegasus Econometric Group in New York,
said the OPEC "public relations campaign," along with technical
factors, helped drive the increases in crude oil and energy products.
"They're crossing their hearts and hoping to die in regards to the
agreed-to production cuts," Evans said.
Crude for September delivery rose 29 cents to $19.94 a barrel;
August heating oil rose 1.06 cents to 50.27 cents a gallon; August
unleaded gasoline rose .62 cent to 60.23 cents a gallon.
Pork products saw gains on the Chicago Mercantile Exchange as
producers anticipated lower slaughter rates, cutting supply to
consumers. Producers typically move fewer hogs during hot weather.
August lean hogs rose 2 cents to 46.87 cents a pound, while August
pork bellies increased by the limit of 3 cents for the second day in a
row, rising to 40.60 cents a pound.
Soybean and grain futures were mixed on the Chicago Board of
Trade after seeing a sharp increase earlier in the week as
temperatures in Midwestern growing states climbed into the 90s.
Corn futures closed slightly higher as traders waited to see whether
the Midwestern heat wave would continue, possibly causing more
damage to crops. The National Weather Service predicted continued
heat, but private forecasters showed more moderating temperatures.
Soybeans closed lower amid the wait for more extensive Midwest
forecasts. Soybeans are hardier than corn and can tolerate heat
longer.
Wheat got an early boost after weekly export sales exceeded
expectations, but heavy commercial selling countered the early gains.
December wheat rose 1/2 cent to $2.70 a bushel; December corn
rose 1/4 cent to $2.15 1/4 a bushel; December oats fell 1 1/2 cents to
$1.16 3/4 a bushel; November soybeans fell 2 1/4 cents to $4.56 1/4
a bushel. |
