Natural Gas Jumps 8.2% on Hopes for Higher Demand

1504 ET – Natural gas prices surge 8.2% higher to finish at $2.533/mmBtu, the largest one-day gain since May 18, and the highest closing price since May 19. Prices are still 43% lower year-to-date, but the current rally which began last week is giving bullish investors hope that summer heat will trigger much stronger demand. “According to NOAA’s 8 to 14-day temperature outlook, above-average temperatures are expected for most of the Mid-West and Southern regions of the lower 48, which will likely add support to power generation demand in the latter half of June,” says Schneider Electric’s Victoria Dircksen in a note. A weekly EIA report this morning came in with precisely the five-year average supply build. (dan.molinski@wsj.com)