Natural gas futures declined for a second day in New York on forecasts of milder weather that would reduce demand for the heating fuel.
Gas slid as much as 1.7 percent after Commodity Weather Group LLC in Bethesda, Maryland, said below-normal temperatures would be confined to the northern tier of the U.S. from Jan. 18 through Jan. 22. Earlier forecasts had shown colder-than-usual weather throughout the central U.S. Gas inventories totaled 3.517 trillion as of Dec. 28, a record for that time of year.
“Reduced heating demand from warm weather and still-record storage levels are bringing sellers into the market,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “The weather is the primary driver.”
Natural gas for February delivery fell 4.9 cents, or 1.5 percent, to $3.217 per million British thermal units at 8:54 a.m. on the New York Mercantile Exchange. Trading volume was 16 percent below the 100-day average. Futures tumbled to $3.05 per million Btu on Jan. 2, the lowest intraday price since Sept. 26. Gas is up 5.1 percent from a year ago.
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