NEW YORK - (Dow Jones) - Natural gas futures finished slightly higher Monday, with the support of positive economic data and rising prices for crude oil.
Natural gas for August delivery on the New York Mercantile Exchange settled 2 cents, or 0.55%, higher at $ 3.689 million British thermal unit after reaching the level of $ 3.774/MMBu combined electronic trading floor and above per day.
Some better-than-expected revenues, the growth measure of economic activity, and the news that the commercial lender CIT Group Inc. (CIT) struck a deal to avoid bankruptcy help increase energy commodities Monday. Traders were to seek signs of economic recovery, which could indicate a rebound in oil and gas demand.
NYMEX light, sweet crude oil for August delivery settled down 42 cents, or 0.66%, higher at $ 63.98. Natural gas can be used as a substitute for petroleum products in certain power plants and heating systems.
"The market was waiting for more revenue, to see where the case" in terms of economic prospects, says Pax Saunders, an analyst with Houston-based energy consulting firm Gelber and Associates.
Toy Maker Hasbro Inc. (HAS) said Monday its second quarter profit rose 5%, beating expectations. Oilfield services company Halliburton to 'S (HAL) earnings fell, but the results exceeded analysts' forecasts.
In the Conference Board, a nonprofit group of business leaders, said Monday the index of leading economic indicators rose 0.7% in June.
But the mixed weather and abundant supplies continued to place some downward pressure on gas prices. The total volume of gas in storage as of July 10 of 2886 billion cubic feet, 18.7% above the five-year average and 25.6% above last year's level.
Moderate temperatures in the major gas consuming regions in the next two weeks, is expected to limit the cooling in demand for natural gas. Unusually cool weather will continue in some areas of the Great Lakes and the Northeast in early August, said Jim Rouiller, a meteorologist with private forecaster Planalytics Inc., in a note to clients Tuesday.
"High temperatures will range from the low 70's of the 80 th lowest in the entire north-east and the Great Lakes and the upper 70-s to the mid 80's to prevail throughout the West and Mid-Atlantic", Rouiller wrote .
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