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Natural Gas Prices Climb as Obama US to use more Foreign Oil
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Natural gas prices climbed on Wednesday as President Barack Obama said he wanted the US to use more of it instead of foreign oil. Colder weather also pushed up prices, as forecasters predicted a cold snap for much of the US in coming weeks.
Natural gas for May delivery rose eight cents to $4.339 per 1000 cubic feet in afternoon trading on the New York Mercantile Exchange.
Meanwhile, benchmark crude for May delivery fell 52 cents to settle at $U104.27 per barrel on the Nymex. In London, Brent crude added 15 cents at $115.11 on the ICE Futures exchange.
In its weekly report on petroleum supplies, the Energy Department said US crude supplies rose by 2.9 million barrels last week. Gasoline supplies fell by 2.7 million barrels.
Natural gas prices rose as Obama announced that he wants to cut the country’s oil imports by a third by 2025. The president touted a series of initiatives, emphasising that the US could rely more on its own natural gas and biofuels to power vehicles and produce electricity.
Natural gas prices remain in about the same range they’ve been in for three years as the recession and a surge in domestic production have kept prices in check. The price of oil, which the US imports primarily from Canada, Saudi Arabia and Mexico, has jumped in that period, rising 27 per cent in last 12 months alone.
In other Nymex trading for April contracts, heating oil was flat at $3.0595 per gallon and gasoline added 2 cents at $3.0624 per gallon.