- High temperature in New York City may reach record Friday
- Gas stockpiles matched all-time high in week ended Oct. 30
When it’s warm enough to forgo a jacket in New York City in November, that’s good news for natural gas bears.
Temperatures will probably be above normal in the eastern half of the U.S. through Nov. 20, according to MDA Weather Services. The high in New York may be 75 degrees Fahrenheit (24 Celsius) Friday, topping a record for the date set in 1948, AccuWeather Inc. data show. Gas stockpiles rose to 3.929 trillion cubic feet last week, matching the all-time high.
“We’re not really seeing any below-normal temperatures in the forecast,” said Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York. “We’re definitely going to reach record storage next week, so there are a few negative factors for the market.”
Natural gas for December delivery fell 2.5 cents, or 1.1 percent, to $2.339 per million British thermal units at 9:41 a.m. on the New York Mercantile Exchange. Gas is down 19 percent this year, heading for the lowest annual average since 1999.
The high in Cleveland may be 69 degrees Friday, 14 more than usual, and the low may be 48, according to AccuWeather. About 49 percent of U.S. households use gas for heating.
Gas inventories may reach a record 4 trillion cubic feet before winter heating demand reduces supplies, according to the Energy Information Administration.
U.S. natural gas production climbed 1.2 percent in August to 90.878 billion cubic feet a day, the EIA said Oct. 30 in its monthly EIA-914 report. Output from Pennsylvania, which includes the Marcellus shale, advanced 2.4 percent to 13.132 billion.