BLBG: Natural Gas Declines in New York for Second Day on Warm Weather Outlook
Natural gas futures dropped for a second day on forecasts of above-normal temperatures that may limit demand for the heating fuel.
Gas futures declined as warmer-than-normal weather is likely across most of the Midwest from Dec. 27 through Dec. 31, according to Commodity Weather Group in Bethesda, Maryland. CWG had yesterday predicted normal or below-normal temperatures in the region during that period.
“It’s very cold right now, but looking down the road, they’re calling for a thaw,” said Ed Kennedy, a trader at INTL Hencorp Futures in Miami. “Based on the forecasts, we have very little reason for an extended bullish move.”
Natural gas for January delivery fell 3.1 cents, or 0.8 percent, to $4.028 per million British thermal units at 9:03 a.m. on the New York Mercantile Exchange. The futures have declined 4 percent this month and 28 percent this year.
To contact the reporter on this story: Christine Buurma in New York at cbuurma1@bloomberg.net;
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net
