BLBG: Natural Gas Futures Decline in New York on Forecasts of Warmer Weather
Natural gas futures declined for a second day in three on forecasts of warmer-than-normal weather that may curb demand for the heating fuel.
Futures fell as temperatures may be as much as 14 degrees Fahrenheit above normal in the Midwest next week, according to MDA Federal Inc.’s EarthSat Energy Weather in Rockville, Maryland. MDA predicted yesterday that temperatures would be 3 to 5 degrees Fahrenheit above normal in the region.
“Some of the warmer weather is having a little bit of a negative effect on prices,” said Peter Beutel, the president of Cameron Hanover Inc. in New Canaan, Connecticut. “It’s probably going to be a very quiet trading day today ahead of the holiday.”
Natural gas for January delivery fell 7 cents, or 1.7 percent, to $4.082 per million British thermal units at 9:04 a.m. on the New York Mercantile Exchange. The futures have declined 2 percent this month and 27 percent this year. Floor trading on Nymex ends at 1:30 p.m. today and is closed tomorrow for Christmas Eve.
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
