Natural gas futures in New York dropped for the first time in five trading sessions as forecasts showed moderating temperatures that would limit heating demand after a cold spell this week.
Gas slid as much as 2.2 percent after Commodity Weather Group LLC in Bethesda, Maryland, predicted mostly normal weather in the eastern half of the U.S. from April 27 through May 6. The low in New York on April 28 may be 50 degrees Fahrenheit (10 Celsius), 1 higher than usual, according to AccuWeather Inc. in State College, Pennsylvania.
“The forecasts for next week and the week after seem to have shifted warmer,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “We may be starting to see the price pullback some traders have been expecting.”
Natural gas for May delivery fell 8.6 cents, or 2 percent, to $4.322 per million Btu at 8:53 a.m. on the New York Mercantile Exchange. The futures have climbed 30 percent this year. Trading volume was 0.9 percent above the 100-day average for the time of day. The futures climbed to $4.429 per million Btu on April 18, the highest intraday price since July 25, 2011.
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