Natural Gas Declines in New York on Forecasts for Mild Weather
Natural gas futures fell for a second day in New York, dropping to a one-month low, as forecasts called for seasonal temperatures across the Northeast and Midwest that will curb demand from power producers.
Cooler air will prevail in the Midwest and southern and eastern states through May 16, Commodity Weather Group LLC of Bethesda, Maryland, said today in a note to clients. Temperatures in New York will reach 69 degrees Fahrenheit (21 Celsius) on May 16, two degrees below normal. Chicago will rise to 72 degrees, two degrees above average.
Natural gas for June delivery slipped 2.5 cents, or 0.6 percent, to $3.986 per million British thermal units at 9:22 a.m. on the New York Mercantile Exchange after dropping to $3.96, the lowest intraday price since April 5. Trading was 8.3 percent above the 100-day average for the time of day.
The fuel has increased 19 percent so far this year as the coldest March since 2002 boosted heating demand and eliminated a stockpile surplus. Supplies advanced 43 billion cubic feet to 1.777 trillion in the week ended April 26, 6.2 percent below the five-year average, the Energy Information Administration reported last week.
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