BS: Natural Gas Drops to Two-Week Low on Milder Weather Forecasts
Natural gas futures slid to a two- week low in New York on revised forecasts for mild mid-February weather that would reduce demand for the heating fuel.
Gas declined as much as 4 percent after Commodity Weather Group LLC in Bethesda, Maryland, predicted above-normal temperatures in the eastern half of the U.S. from Feb. 7 through Feb. 11. Earlier outlooks had shown lower-than-usual readings. Prices dropped to $3.307 per million Btu in overnight trading, the lowest level since Jan. 11.
“The revised forecasts came in warmer and that’s putting some pressure on the market,” said Tom Doremus, an analyst at Tradition Energy in Stamford, Connecticut. “We’re seeing some near-term relief from last week’s cold.”
Natural gas for February delivery fell 12.8 cents, or 3.7 percent, to $3.316 per million British thermal units at 8:54 a.m. on the New York Mercantile Exchange. The futures have gained 22 percent from a year ago. Trading volume was about double the 100-day average for the time of day.
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
