WASHINGTON — Natural- gas futures soared 15 percent Thursday, the biggest one- day gain in almost five years, on speculation a recovery in the U.S. economy is gaining momentum, spurring demand for industrial fuels.
The rally began after Energy Department data showed a smaller-than-forecast increase in U.S. stockpiles. Reports in recent days on manufacturing and unemployment have signaled the recession is easing, said Tom Orr, director of research at brokerage Weeden & Co. in Greenwich, Conn.
“The biggest thing hanging over the head of gas was that the U.S. economy was sluggish and not recovering,” Orr said. “The sentiment has changed to a slightly improving posture.”
Natural gas for October delivery rose 42.7 cents, or 15 percent, to settle at $3.256 per million British thermal units on the New York Mercantile Exchange, the largest one-day gain since Nov. 24, 2004.
Orr said the break in futures above $3 triggered pre- arranged buy programs, accelerating the move higher.
Electronic trading volume reached 314,641 contracts at 4:03 p.m. in New York. Total volume has averaged 211,000 a day over the past three months.
