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Nat Gas Hits Highest Price This Month

Monday, 18 Jun 2012 | 2:34 PM ET

Expectations that air conditioning usage will be cranked up this week in a big swatch of the U.S. helped drive natural gas futures up more than 7 percentMonday, to the highest level since late May.

Natural gas prices have risen more than 20 percent in the past three sessions, including a 14 percent jump on Thursday when the latest government storage data was released, showing below average inventory growth.

Weather forecasts are coming in warmer than expected in the Midwest and Northeast for the next two weeks.

Expectations of another smaller than average storage injection is also fueling further gains in natural gas.

Technically, traders are looking at next key resistance around $2.63 to $2.65 and then $2.76. Gas was trading at the resistance level, at $2.64 per million BTU in afternoon trading.

However, Barclays is still "bearish" medium term as prices approach the $2.76 high.

Follow Sharon on Twitter: @sharon_epperson

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  • Patti Domm

    Patti Domm is CNBC Executive Editor, News, responsible for news coverage of the markets and economy.

  • A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.

  • Sharon Epperson is CNBC's senior commodities and personal finance correspondent.

  • JeeYeon Park is a writer for CNBC.com. Follow her on Twitter: @JeeYeonParkCNBC

  • Rick Santelli joined CNBC Business News as an on-air editor in 1999, reporting live from the floor of the Chicago Board of Trade.

  • Senior Producer at CNBC's Breaking News Desk.

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