RTTN: U.S. GAS: Futures Near Flat As Hot Weather Persists
--Natural-gas futures mostly unchanged Monday
--Forecasters see warmer-than-normal temperatures this week
--Futures recently down 0.7c to $2.867/MMBtu
By Jerry A. DiColo
NEW YORK--Natural gas futures held near flat Monday as traders braced for warmer-than-normal temperatures across much of the U.S.
Natural gas for August delivery fell 0.7 cent, or 0.2%, to recently trade at $2.867 a million British thermal units on the New York Mercantile Exchange, after trading as high as $2.915/MMBtu earlier in the session.
The National Weather Service has issued heat advisories across the northern Plains and Upper Midwest as forecasts are calling for temperatures as much as 20 degrees above normal. Heat and humidity are expected to move into the Ohio Valley and Mid-Atlantic on Tuesday and Wednesday, the forecaster said.
Hot weather typically raises demand from gas-fired utilities as businesses and consumers turn up their air conditioning.
Warmer-than-normal temperatures since the beginning of June have boosted natural-gas futures to nearly $3/MMBtu. But investors have settled into a holding pattern around $2.90/MMBtu, worried that higher prices could slow utilities' switch to natural gas from coal.
The heat wave has helped slow the growth of the U.S. oversupply of natural gas over the past few weeks. On Thursday, the U.S. Energy Information Administration said natural-gas inventories rose by 33 billion cubic feet. Analysts had expected a slightly smaller injection, but the increase was still well below the 90-bcf build typical for this time of year.
Natural gas for next-day delivery at the benchmark Henry Hub in Louisiana recently traded at $2.915/MMBtu, according to IntercontinentalExchange, compared with Friday's average of $2.8822/MMBtu. Natural gas for next-day delivery at Transcontinental Zone 6 in New York traded at $3.1625/MMBtu, down from $3.1793/MMBtu.
Write to Jerry A. DiColo at jerry.dicolo@dowjones.com
