Bloomberg News

Natural Gas Futures Drop for Second Day on Warm Weather Outlook

February 04, 2013

Natural gas futures declined for a second day in New York on forecasts of higher-than-average temperatures that would curtail demand for the heating fuel.

Gas slipped as much as 1.3 percent after MDA Weather Services in Gaithersburg, Maryland, predicted warmer-than-usual weather in the eastern half of the U.S. from Feb. 9 through Feb. 13. The low in New York on Feb. 12 may be 36 degrees Fahrenheit (2 Celsius), 8 above the norm, according to AccuWeather Inc. in State College, Pennsylvania.,

“The temperatures are easing up and the calendar is working against us,” said Phil Flynn, senior market analyst at Price Futures Group in Chicago. “The market’s already looking ahead to the end of winter.”

Natural gas for March delivery fell 3.3 cents, or 1 percent, to $3.268 per million British thermal units at 9:05 a.m. on the New York Mercantile Exchange. The futures are up 31 percent from a year ago. Trading volume was 37 percent below the average for the time of day.

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


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