Natural gas futures slid to a two-week low in New York on speculation that moderating weather will limit demand for the heating and power-plant fuel.
Gas fell as much as 3.4 percent as Commodity Weather Group LLC said a late winter storm moving from the Midwest into the Northeast this week will give way to milder weather through March 26. U.S. stockpiles probably fell by more than twice the normal amount last week after a blast of cold air, analyst estimates show.
“You’ve just witnessed some of the coldest weather in many, many years, but the immediate fear of not having supply because of super cold weather is going to diminish,” said Tom Saal, senior vice president of energy trading at FCStone Latin America LLC in Miami. “As that fear diminishes, the market should trade lower.”
Natural gas for April delivery dropped 11 cents, or 2.4 percent, to $4.495 per million British thermal units at 9:46 a.m. on the New York Mercantile Exchange after sliding to $4.448, the lowest intraday price since Feb. 27. Volume for all futures traded was 6.7 percent above the 100-day average. The futures are up 6.3 percent this year.
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