--Analysts see early injection of gas into U.S. stockpiles
By Jerry A. DiColo
Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- Natural gas futures aimed lower Monday as mild spring temperatures across the eastern half of the U.S. suggest high gas inventories won't be burned for heating needs.
Natural gas for April delivery fell 2.0 cents, or 0.9%, to $2.306 per million British thermal units on the New York Mercantile Exchange. The benchmark contract had fallen as low as $2.285 in earlier trading.
Gas prices fell after a sharp rebound Friday, sticking to a trading range near $2.30 that has held futures for most of March.
Forecasters are calling for much warmer-than-normal temperatures for the northeastern U.S. this week, which will reduce the need for gas-fired heating and could lead to additions into U.S. stockpiles. In most years, the last withdrawal from inventories is later in March.
"Heating fuel consumption is quickly fading into the sunset. The market is quickly becoming more focused on how high total inventories will be at the end of the winter," said Dominick Chirichella, an analyst at the Energy Management Institute.
An early injection would add to already high U.S. supplies, keeping pressure on prices.
Large speculators continue to bet on falling prices. Last week, money managers, such as hedge funds, raised their net-short position in Nymex natural gas futures by 17% to 102,137 contracts, from 87,584 contracts in the previous week.
Chirichella expects gas will trade as low as $1.75/MMBtu in the next few months.
Natural gas for next-day delivery at the benchmark Henry Hub in Louisiana recently traded at $2.1325/mmBtu, according to Intercontinental Exchange, compared with Friday's average of $2.0118/mmBtu. Natural gas for next-day delivery at Transcontinental Zone 6 in New York traded at $2.25/mmBtu, compared with $2.1240/mmBtu.
