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.
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