U.S. Gas Caps Biggest 1-Month Drop Since 2014 on Balmy Weatherby
U.S. natural gas futures capped the biggest monthly drop since December 2014 as forecasts predicted the early arrival of mild spring weather.
Above-normal temperatures will dominate in the contiguous U.S. from March 9 through March 19, according to Commodity Weather Group LLC. New York’s low on March 10 may be 44 degrees Fahrenheit (7 Celsius), 11 more than normal, data from AccuWeather Inc. show.
Gas is trading near ’90s-era lows as output from shale formations floods the market, expanding the biggest supply glut in four years. As winter draws to a close, the surplus is poised to linger into late 2016, capping price gains.
“We’ve been having a hard time finding reasons for the market to turn around,” said Gene McGillian, a senior analyst and broker at Tradition Energy in Stamford, Connecticut. “We’re supposed to get mild weather across the major gas-consuming regions of the country for the next few weeks.”
Natural gas for April delivery fell 8 cents, or 4.5 percent, to settle at $1.711 per million British thermal units on the New York Mercantile Exchange. Prices dropped 26 percent this month.