BLBG:U.S. Natural Gas Slips After Gaining on Cold Weather Forecasts
Natural gas fell for the first time in seven days after rising to a 10-month high on speculation that cold weather next week will boost demand for heating fuels.
Gas for November delivery fell as much as 3.5 cents, or 1 percent, to 3.496 per million British thermal units in electronic trading on the New York Mercantile Exchange. It was at $3.502 per million Btu at 11:41 a.m. Tokyo time. Futures rose 5.1 cents, or 1.5 percent, yesterday to $3.531 per million Btu, the highest settlement price since Dec. 2.
The contract hasn’t closed lower since Sept. 24. Prices dropped after the 14-day relative strength index rose as high as 74.5 yesterday. A reading above 70 is a sign that contracts are overbought. The RSI was 72.7 today.
Commodity Weather Group LLC predicted below-normal temperatures in the Northeast and Midwest over the next six to 15 days. Heating demand in the lower 48 states may be 60 percent above normal Oct. 8 through Oct. 12, data show from Weather Derivatives in Belton, Missouri.
To contact the reporter on this story: Jacob Adelman in Tokyo at jadelman1@bloomberg.net
To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net
