Natural Gas Drops After Cold Weather in U.S. Spurs 3-Day Rally

Natural gas dropped in New York, snapping three days of gains driven by below-normal temperatures in the U.S.

Futures for February delivery fell as much as 0.8 percent to $4.334 per million British thermal units in electronic trading on the New York Mercantile Exchange and were at $4.383 at 10:51 a.m. London time. The contract climbed 2.2 percent yesterday to settle at $4.369, the highest in two weeks. Prices are up 8.1 percent this week.

Companies including MDA Weather Services said below-normal temperatures will sweep across the Eastern half of the U.S. from Jan. 19 through Jan. 28. Prices jumped 5.5 percent to $4.274 Jan. 13 on speculation that a government report tomorrow will show a record weekly stockpile decline following a blast of arctic weather.

Chicago’s low on Jan. 27 will drop to 4 degrees Fahrenheit (minus 16 Celsius), 14 below normal, according to AccuWeather Inc. in State College, Pennsylvania. On Jan. 22, New York’s reading will be 11 lower than average at 16 degrees and Atlanta will be 5 below normal at 26 degrees.

About 49 percent of U.S. households use gas for heating, according to the U.S. Energy Information Administration.

To contact the reporters on this story: Chou Hui Hong in Singapore at chong43@bloomberg.net; Anna Shiryaevskaya in London at ashiryaevska@bloomberg.net

To contact the editor responsible for this story: Pratish Narayanan at pnarayanan9@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.