Natural gas futures traded near a one-month low on forecasts for cool June weather that would curtail demand from power plants.
Temperatures may be mostly normal or below average in the lower 48 states through June 10, according to Commodity Weather Group LLC. The high in New York on June 7 may be 76 degrees Fahrenheit (24 Celsius), 1 lower than usual, AccuWeather Inc. said on its website.
“The onset of mild weather is weighing on the market,” said Gene McGillian, a senior analyst and broker at Tradition Energy in Stamford, Connecticut. “With production levels this high, unless we start to see some heat returning, prices aren’t going to recover.”
Natural gas for July delivery fell 0.9 cent to $2.633 per million British thermal units at 9:08 a.m. on the New York Mercantile Exchange. Gas slid to $2.603 in earlier trading, the lowest intraday price since April 30.