BLBG: Natural Gas Declines in New York for First Day in Three on Warmer Weather
Natural gas futures declined for the first day in three on forecasts of warmer-than-normal weather that may crimp demand for the heating fuel.
Gas dropped as much as 1.8 percent in New York as temperatures may be above-normal across most of the continental U.S. from March 14 through March 18. Temperatures may be up to 8 degrees above normal in the central U.S., according to WSI Corp. in Andover, Massachusetts.
“As we get into the warmer weather and you start to see a substantial drop in heating demand, I do think the market will start to grind lower,” said Gene McGillian, an analyst and broker with Tradition Energy in Stamford, Connecticut. “I think we’ll definitely see the $3.50 area.”
Natural gas for April delivery fell 4.9 cents, or 1.2 percent, to $3.878 per million British thermal units at 9:02 a.m. on the New York Mercantile Exchange. The futures have declined 12 percent this year.
To contact the reporter on this story: Christine Buurma in New York at cbuurma1@bloomberg.net;
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net
