Natural Gas Prices Are Heating Up

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Photo: tom.arthur via flickr

A bullish report on natural gas demand in China helped send futures up nearly 4 per cent this morning.Chinese consumption levels are predicted to soar even higher to reach 375 billion cubic meters by 2020, thanks to the country’s desire to increase share of natural gas in its energy mix, according to the report from Global Data.

August contracts were trading at $2.885, a 3.9 per cent gain from Friday’s close.

Dow Jones’ David Bird also reported the EIA says hot weather is buoying prices.

“With warmer summer weather and increased electric demand for air conditioning, demand will increase, requiring increased output from both coal- and natural gas-fired generators,” Bird quoted the EIA as saying.

Stocks of major gas players including Chesapeake, Devon and Apache briefly saw gains but have since flattened.

SEE MORE — The 9 Events That Trigger Natgas Price Shocks

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