Natural-gas futures prices posted their biggest one-day gain Friday since February amid a race to replenish low supplies in some parts of the country before sharply colder weather sets in.
On other markets, copper futures rose sharply, while coffee futures retreated.Natural gas in storage is at 83 percent of capacity, or about 9 percent below last year, according to the American Gas Association. While there appears to be adequate supply to meet demand in the Northeast, supplies in the Texas producing region and on the West Coast are dangerously low, said analyst Scott Conner at KCS Energy in Houston.
"People have been racing to fill their inventories, and a lot of people still feel we're not where we need to be going into the winter," Conner said. "Any cool weather in November is bound to put some serious pressure in inventories."
The National Weather Service later reported that cool weather is indeed coming. The middle two-thirds of the country, from northern New Mexico to upper Michigan, is expected to see temperatures sharply below normal over the next 10 days, the agency said.
Natural gas is the primary source for heating most American homes and businesses. Prices last year rocketed higher after cold weather froze some well equipment and amid a shortage of pipeline capacity.
The expiring November natural-gas contract settled 16.7 cents higher at $2.652 per 1,000 cubic feet. The December contract rose 14.8 cents to $2.704.
Heating oil, unleaded gasoline and crude futures also rose amid speculation several refineries will have brief shutdowns at a time when heating oil and unleaded gasoline supplies remain low.
December light, sweet crude rose 35 cents to $24.86 a barrel; November heating oil rose 1.23 cents to 71.72 cents a gallon; November unleaded gasoline rose 0.88 cent to 70.10 cents a pound.
Copper futures prices rose sharply after the London Metal Exchange announced another sharp decline in its warehouse inventories, leaving supplies close to five-year lows.