Supply worries move market

Natural gas futures rose to a nine-month high Thursday after a U.S. report showed supplies gained less than analysts expected amid hot weather and a coal shortage that raised demand for gas-generated electricity. Inventories of the heating and power-plant fuel rose by 37 billion cubic feet last week to 2.42 trillion cubic feet, the U.S. Energy Department said. Analysts had expected a gain of 49 billion, the median of 21 estimates in a Bloomberg survey. “You’re starting to see the injections fall far short of what people expect, and it’s a dangerous trend, especially since the forecasts for temperatures continue to be very, very hot,” Phil Flynn, vice president of risk management at Alaron Trading Corp. in Chicago, said.

Houston Chronicle