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U.S. natural gas futures rose nearly 9% on Monday as traders covered short positions following a slide to a one-week low in the last session, while analysts expect high price volatility in the near-term. Front-month gas futures for May delivery on the New York Mercantile Exchange (NYMEX) were 14.5 cents, or 7.2%, higher at $2.16 per million British thermal units (mmBtu) by 10:53 EDT. Prices hit a one-week low of $1.99 on Thursday. Gary Cunningham, director of market research at Tradition Energy attributed the rebound in prices to traders covering their short positions, adding that elevated cooling demand into summer should be supportive for the market. “We don’t expect to have the same summer heat that we had last year, but we certainly think there will be enough heat to support cooling demand and power sector demand for gas, which is well above normal.” However, analysts said the market could see high volatility in the near-term, given the lack of clear catalysts. While the May gas contract is holding above the $2 mark, the low demand shoulder period is likely to limit the upside, Ritterbusch and Associates said in a note. Prices declined more than 9% last week, which […]
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