7/25 7:03 Natural Gas Could Lead Commodities Up Amid Hot Weather (Repeat)
By Mark Pittman
Natural Gas Could Lead Commodities Up Amid Hot Weather (Repeat)
(Repeats story that moved July 23; updates temperatures in
18th paragraph.)
New York, July 25 (Bloomberg) -- Natural gas could lead
commodities higher in coming days as a prolonged heat wave forces
utilities to burn more of the fuel to keep up with surging demand
for air conditioners.
The National Weather Service issued a six- to 10-day
forecast calling for much-above-normal temperatures in the Upper
Midwest, with above-normal temperatures in the Plains and East
Coast as far south as North Carolina from July 29 through Aug. 2.
''Forecasts for much-above normal tend to come in packs,''
said Tim Evans, an analyst at Pegasus Econometric Group in New
York. ''And there's a perception that this is a persistent
weather pattern.''
The Bridge-Commodity Research Bureau index ended the week
7.67 higher at 191.99, its highest since June 18. The Goldman-
Sachs Commodity Index, which is weighted toward energy markets,
rose 4.54 to 170.42, its highest since March 27, 1998.
Natural gas for August delivery last week rose 34.10 cents,
or 15.6 percent, to $2.528 a barrel on the New York Mercantile
Exchange, the highest for a contract closest to expiration since
Nov. 6, 1998.
Cooling demand is expected to be 64 percent above normal in
the U.S. Midwest over the next seven days, according to Weather
Derivatives, a Belton, Missouri-based forecasting firm.
Temperatures in Chicago and Detroit will be in the low to mid-90s
Fahrenheit. East Coast cooling demand is expected to be 29
percent above normal.
Evans predicted that natural gas could reach $2.80 before
the end of this week, particularly if a summer storm emerges in
the Gulf of Mexico, which could endanger offshore production.
''You're pushing luck in terms of hurricane season,'' he
said. ''They were forecasting that this would be a more active
hurricane season and we've seen nothing yet.''
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No suh, maybe _you will be correct! I would bet that if nat. gas price gets to $2.80 in the next coupla weeks and stays there for two weeks straight you will see $5 for the CHK quote. |
