Natural Gas Drops to 11-Week Low on Moderating November Weather
Natural gas futures slid to an eleven-week low in New York on forecasts for mild mid-November weather that would curtail demand for the heating fuel.
Gas dropped as much as 1.9 percent. WSI Corp. in Andover, Massachusetts, said temperatures would be above normal in the eastern two-thirds of the U.S. from Nov. 15 through Nov. 19. The low in New York on Nov. 17 may be 43 degrees Fahrenheit (6 Celsius), 2 more than average, according to AccuWeather Inc. in State College, Pennsylvania.
“The forecasts are getting warmer and that’s giving the market some bearish momentum,” said Phil Flynn, a senior market analyst at Price Futures Group in Chicago. “The demand side of the equation really has not been there.”
Natural gas for December delivery fell 4.5 cents, or 1.3 percent, to $3.40 per million British thermal units at 8:59 a.m. on the New York Mercantile Exchange. Trading volume was 61 percent above the average for the time of day. Prices have climbed 1.4 percent this year. The futures dropped to $3.379 per million Btu in intraday trading, the lowest price since Aug. 16.
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