Natural gas futures declined after rebounding from the lowest level in three months amid forecasts of warmer-than-average weather that would increase demand for the power-station fuel.
Gas for July delivery slid as much as 0.6 percent to $3.756 per million British thermal units in electronic trading on the New York Mercantile Exchange and was at $3.758 at 12:52 p.m. Singapore time. The contract gained 1.4 percent to settle at $3.777 yesterday.
Temperatures may be above normal in the southern and central U.S. through June 21, according to MDA Weather Services in Gaithersburg, Maryland June 12. The high in Dallas on June 15 may be 98 degrees Fahrenheit (37 Celsius), 6 more than usual, said AccuWeather Inc. in State College, Pennsylvania.
The high in New Orleans on June 15 may be 95 degrees, 6 more than usual, AccuWeather predicted. Power generation accounts for 32 percent of U.S. gas demand, according to the Energy Information Administration, the Energy Department’s statistical arm.
“We’re getting a little bit of an early taste of summer,” Tom Saal, senior vice president of energy trading at FCStone Latin America LLC in Miami, said yesterday.
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