Natural-gas futures more than 8% higher; oil settles with a modest gain

Natural-gas futures climbed by more than 8% on Wednesday, supported by a forecast for warmer weather, which is expected to boost demand for the commodity, while oil posted a modest gain in the wake of a steep drop that pulled prices below $100 a barrel. The National Oceanic and Atmospheric Administration’s updated six to 14-day outlook predicts hotter-than-normal temperatures across the entire U.S., except for part of the West and a small section of the Southeast, said Christin Kelley, senior commodity analyst at Schneider Electric, in a note. “This will likely keep power burns strong and tighten U.S. market balances.” Oil futures, meanwhile, saw a slight rebound from their lowest finish in three months, even as the Energy Information Administration reported a weekly rise in U.S. crude inventories. August natural gas
NGQ22,
+7.32%
rose 53 cents, or 8.5%, to settle at $6.689 per million British thermal units on the New York Mercantile Exchange. August West Texas Intermediate crude
CLQ22,
+0.70%
added 46 cents, or 0.5%, to finish at $94.30 a barrel.