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Cold Snap Expected to Fuel Rebound; U.S. Natural Gas Ends Five-Day Losing Streak
U.S. natural gas futures recovered after five consecutive trading days of declines, driven by forecasts of cold weather in some regions. Gary Cunningham of Tradition Energy noted in a report: “Forecasts for the next 11 to 15 days indicate a cold snap across the northern half of the United States, which will push electricity demand for heating back above normal levels.” ” He added: “The scope for a rebound should be relatively limited, largely just pulling prices back from oversold territory, so the February contract is expected to fluctuate between $3.40 and $3.60.” February natural gas on the New York Mercantile Exchange rose 4.8% to settle at $3.511 per million British thermal units.
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