U.S. Gas Natural Futures Slide as Late-Season Heat Seen Easingby
U.S. natural gas futures slipped for the third time in four days on forecasts for cooler weather that would curb power-plant demand after a warm spell.
Temperatures may be mostly normal in the central U.S. from Sept. 26 through Sept. 30, according to the Weather Company. The high in Chicago may be 71 degrees Fahrenheit (22 Celsius) on Sept. 26, matching the average, AccuWeather Inc. forecasts show.
Gas stockpiles will expand at a faster pace as fall approaches, putting downward pressure on the market after prices climbed to an 11-week high Thursday. Although summer heat sent gas demand from electricity generators to a record, eroding a supply glut, inventories remain above normal levels for this time of year.
“The central part of the country is going to drop back down to normal temperatures, which isn’t supportive for the gas market ,” said Gene McGillian, manager of market research at Tradition Energy in Stamford, Connecticut. “We have more than ample supplies, plus six weeks of low demand ahead.”
Gas futures for October delivery fell 2 cents, or 0.7 percent, to $2.907 per million British thermal units at 9:17 a.m. on the New York Mercantile Exchange. Prices are up 3.9 percent this week after climbing to $2.927 Thursday, the highest settlement since July 1.