NEW YORK ( TheStreet) -- Natural gas prices were pushing to a one-week high on favorable weather factors, supply gaps left by the start of routine nuclear maintenances and improved market sentiment due to reassuring eurozone news.
November natural gas futures were moving higher for a second consecutive day, tapping a one-week high of $3.926 per million British thermal units before retreating slightly to $3.892, up 1.2%.
"Late-summer heat is spurring on some buying interest, despite the backdrop of weak fundamentals -- strong supply or lowly demand," Summit Energy analyst Matt Smith noted.
Cameron Hanover analysts agreed, saying that the market is now "ripe" for any bullish weather forecast."Daily and weekly charts had shown us a market that had been susceptible to a rally at any moment to begin with," they said. With routine nuclear maintenance seasons kicking off, there's also been "some reliance on natural gas for the hole in supply," Smith add. Stocks, metals and energy were all climbing Tuesday morning, as a working plan among European officials to calm the eurozone's debt crisis coaxed market sentiment to the upside. Global markets have cheered reports that officials are discussing possibly levering up the eurozone rescue fund -- the European Financial Stability Facility -- by allowing it to borrow funds from the European Central Bank. The October natural gas contract is set to expire tomorrow and will give way to the November contract at about a seven cent premium according to Smith. Energy stocks were advancing. Cheniere Energy (LNG - Get Report) was popping 4.3% to $5.55; Chesapeake Energy (CHK - Get Report) was adding 3.1% to $28.39; Samson Oil & Gas (SSN - Get Report) was rising 3% to $2.42; Southern Union (SUG) was rising 1% to $41.50; El Paso (EP) was gaining 4.1% to $18.38; Kinder Morgan (KMI - Get Report) was advancing 3% to $27.12 and Rex Energy (REXX - Get Report) was gaining 4.4% to $13.89. -- Written by Andrea Tse in New York.
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