U.S. Natural Gas Rebounds After 2.5 Percent Decline Last Week

Natural gas rebounded in New York. Futures declined last week on forecasts of moderating weather that would limited demand from power plants.

Gas for July delivery gained as much as 1 percent to $3.771 per million British thermal units in electronic trading on the New York Mercantile exchange, and was at $3.765 per million Btu at 3:13 p.m. Singapore time. The contract fell 2.1 percent on June 14 to cap a 2.5 percent drop for the week.

Mostly normal temperatures are forecast in the eastern half of the U.S. through June 28, according to Commodity Weather Group LLC in Bethesda, Maryland. The high in New York on June 19 may be 80 degrees Fahrenheit (27 Celsius), matching the day’s average, according to AccuWeather Inc. in State College, Pennsylvania.

The high in Cleveland on June 19 may be 75 degrees Fahrenheit, 4 below normal, AccuWeather said. Power generation accounts for 32 percent of U.S. gas demand, according to the Energy Information Administration, the Energy Department’s statistical arm.

To contact the reporter on this story: Chou Hui Hong in Singapore at chong43@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net

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