U.S. Natural Gas Caps Longest Streak of Declines Since Februaryby
U.S. natural gas futures capped the longest losing streak since February as forecasts showed fading summer heat reducing demand for the power-plant fuel.
Gas has dropped for four straight days as meteorologists predict mostly normal temperatures in the central and southern U.S. from Aug. 13 through Aug. 22. The high in Houston on Aug. 14 may be 96 degrees Fahrenheit (36 Celsius), matching the average for the day, AccuWeather Inc. data show.
Cooler weather will accelerate weekly gains in U.S. gas stockpiles, pushing inventories toward a record. While blistering heat drove gas demand from power generators to an all-time high last month, supplies remain 16 percent above the seasonal norm, putting downward pressure on prices.
“There’s a realization that the heat of summer is passing, and that’s weighing on the market,” says John Kilduff, partner at Again Capital LLC. “The storage surplus is still in double-digit territory.”
Gas futures fell 13.3 cents, or 4.8 percent, to $2.615 per million British thermal units on the New York Mercantile Exchange, the lowest settlement since June 16. The one-day drop was the biggest since July 5.