NYMEX Hub natgas futures were expected to open higher Tuesday as warmer-than-normal weather continued to sustain cooling demand across much of the eastern two thirds of the U.S., industry sources said.
July traded at $2.37-2.38 per mmBtu this morning in the over-the-counter market, which surpassed Friday's high of $2.37 and the settlement at $2.358.
Early Henry Hub cash prices were also quoted higher in the mid-$2.30s, up at least five cents from Friday's levels.
''At some point they're going to try to fill the gap. There's still plenty of length in the market,'' one trader said.
Technically, resistance was now seen at $2.415 and then at the contract high of $2.435. Support was seen at near $2.23, and then at the $2.17 double bottom and $2.11.
Above-normal temperatures were expected to continue this week in much of the U.S., with a high of 90 degrees expected in New York early this week and highs in the mid-90s seen in much of Texas, Weather Services Corp. said.
Temperatures are expected to moderate somewhat as the week progresses in the Northeast and Texas, pushing temperatures back into the high-80s by the weekend in Houston. But warmer weather is forecast for the Midwest, bringing temperatures into the high-80s in Chicago by Saturday.
However, below-normal temperatures are forecast to continue in the Northwest, leaving most readings in the 60s and 70s.
Monday's six- to 10-day forecast (Sunday-Thursday) called for a continuation of warmer-than-normal weather across Texas and the Midwest and into the Appalachian region and parts of the Northeast. Below-normal temperatures were expected to cover much of the West again.
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