Natural gas futures dropped for a third day in New York as forecasts showed that chilly weather in the eastern U.S. this week will give way to rising temperatures.
Gas fell as much as 1.2 percent as cold air through April 6 will be followed by higher-than-normal temperatures, according to Commodity Weather Group LLC in Bethesda, Maryland.
“It’s a lot harder to be long now, when there’s five or six days of cold weather left, than in February, when there were five or six weeks,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “We’ll see if the longs can hang in there once they lose that demand.”
Natural gas for May delivery retreated 3.6 cents, or 0.9 percent, to $3.979 per million British thermal units at 9:30 a.m. on the New York Mercantile Exchange. Trading was 21 percent above the 100-day average for the time of day. Prices have risen 19 percent this year.
New York will dip to a low of 33 degrees Fahrenheit (1 Celsius) tomorrow, 8 degrees below normal, before rising to 72 degrees on April 10, 13 degrees above normal, according to AccuWeather Inc. in State College, Pennsylvania. Washington will reach a low of 31 degrees, 8 less than average, before rising to 77 degrees on April 10, 12 higher than usual.
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