Globe & Mail 09:41 AM EDT, 10/20/2020 (MT Newswires) -- Benchmark natural gas traded higher early on Tuesday as cold weather in the northern United States adds heating demand and gulf coast LNG-export demand rises.
Gas for November delivery was last seen up US$0.11 to US$ 2.91 per million British thermal units in Nymex electronic trade.
The National Weather Service's long-term forecasts call for lower than normal temperatures for most of the continental United States for the next two week, with snow and freezing rain expected in the country's northern tier, adding early heating demand in what is normally the shoulder season for the fuel.
Export demand is also expected to recover as gulf coast LNG plants resume operations following two damaging hurricanes, easing concerns about full storage prior to the Nov.1 start of the heating season.
The Energy Information Administration last week pegged gas inventories at 3.88 trillion cubic feet, 10% above the five-year average for the period.