Natural Gas Drops on Outlook for Waning Summer Demand Season
Natural gas futures fell in New York on speculation that waning summer heat will reduce demand for the power plant fuel.
Gas dropped as much as 1.3 percent as parts of the East Coast will turn cooler in early September while the Midwest will see above-normal temperatures from Aug. 28 through Sept. 6, Commodity Weather Group LLC said. Hot weather helped prices jump 5.3 percent in the first four days of this week.
“We saw a pretty dramatic run-up through the week,” said Eric Bickel, an analyst at Schneider Electric in Louisville, Kentucky. “While it is warmer than expected over the next couple of weeks, we are in the back half of the summer peak.”
Natural gas for September delivery slid 3.3 cents, or 0.9 percent, to $3.511 per million British thermal units at 9:39 a.m. on the New York Mercantile Exchange. Trading volume was 19 percent below the 100-day average. Prices are up 4.8 percent this year.
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