N.Y. Natural Gas Rises as Crude Climbs to Record $93 a Barrel

Oct. 29 (Bloomberg) — Natural gas advanced in New York, following crude oil, after Mexico shut a fifth of its production.

Crude rose to a record $93 a barrel as state-owned Petroleos Mexicanos, or Pemex, shut 600,000 barrels of daily output as a Gulf of Mexico storm moved through its production fields. Heating oil, a byproduct of crude, also rose, attracting investors to natural gas as a cheaper investment alternative.

“The tropical storm and the cut in production in the Gulf” are providing support to gas, said Phil Flynn, senior trader at Alaron Trading Corp. in Chicago. “We’re also getting a little cold air, there’s some frost forecast for the Northeast.”

Bloomberg