NEW YORK, Jan 3 (Reuters) - Front-month U.S. natural gas futures rallied more than 5 percent by midday Monday, with frigid forecasts for the Northeast and Midwest for the next two weeks driving the contract to a five-month spot chart high despite a comfortable supplies.
At about 1:20 p.m. EST (1820 GMT), the front month <NGc1>, which gapped higher on the open, rallied 23.4 cents, or 5.3 percent, to $4.639 per million British thermal units, the highest level for the nearby contract since early August.
While gas supplies were still comfortable, traders said recent positive economic data that could translate into stronger industrial demand and early signs gas drilling may be slowing also underpinned prices. (Reporting by Joe Silha; Editing by John Picinich)
UB