Outlook for Waning Power Demand Pushes Natural Gas Futures LowerBy
Natural gas futures dropped as forecasts showed mild weather that would curtail power demand, boosting supply gains.
Temperatures may be average or below normal in most of the eastern half of the U.S. through Sept. 15, according to Commodity Weather Group LLC. New York’s high temperature may reach 76 degrees Fahrenheit (24 Celsius) on Sept. 14, matching the usual reading, AccuWeather Inc. data show. Gas stockpiles were 4.1 percent above the five-year average as of Sept. 4.
"We’re going to see a drop-off in seasonal demand," said Gene McGillian, a senior analyst and broker at Tradition Energy in Stamford, Connecticut. "There’s a lot of supply coming out of the ground, and the market is going to remain under pressure."
Natural gas for October delivery fell 0.4 cent to $2.679 per million British thermal units at 9:08 a.m. on the New York Mercantile Exchange. Volume for all futures traded was 23 percent below the 100-day average. Gas is down 7.2 percent this year.
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