01 Oct

Natural Gas Futures Advance as Storm Threatens Gulf of Mexico

Natural gas futures climbed in New York for the fourth time in five days on speculation that a tropical weather system will enter the Gulf of Mexico, causing pipelines and platforms to shut.

Gas gained as much as 1.7 percent. An area of low pressure over the western Caribbean Seahas a 50 percent chance of becoming a tropical cyclone over the next five days, the National Hurricane Center in Miami said in an 8 a.m. outlook. The storm will move over the southern Gulf later this week, according to the hurricane center.

“The bottom line for the market is the concern that this storm could be a problem maker,” said Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York. “Traders are looking to take prices a little higher.”

Natural gas for November delivery rose 3.6 cents, or 1 percent, to $3.596 per million British thermal units at 9:37 a.m. on the New York Mercantile Exchange. Trading volume was 15 percent above the average for the time of day. Prices have advanced 7.3 percent this year.

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