Natural gas fell to a one-week low in New York on speculation that mild weather will reduce demand for the fuel, accelerating stockpiling.
Gas declined as much as 1.5 percent as forecasts showed seasonal weather across most of the lower 48 states from Sept. 28 through Oct. 2, with some higher readings in the Midwest, according to Commodity Weather Group LLC in Bethesda, Maryland. An unusually hot end to summer slowed inventory gains over the past month.
“It’s a neutral weather scenario and it’s putting pressure on the market as a result,” said Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York. “If you don’t get some unexpected pluses or minuses to your forecasts, the market will generally drift lower on demand destruction.”
Natural gas for October delivery fell 4.1 cents, or 1.1 percent, to $3.646 per million British thermal units at 9:18 a.m. on the New York Mercantile Exchange after dropping to $3.632, the lowest intraday price since Sept. 16. Trading was 13 percent below the 100-day average for the time of day. Prices are up 8.8 percent this year and 2.3 percent for the quarter.
To contact the reporter on this story: Naureen S. Malik in New York at email@example.com
To contact the editor responsible for this story: Dan Stets at firstname.lastname@example.org