Natural gas futures dropped in New York, heading for a third weekly decline, on forecasts of moderating weather that would limit demand from power plants.
Gas slipped as much as 0.9 percent as mostly normal temperatures are forecast in the eastern half of the U.S. through June 28, according to Commodity Weather Group LLC in Bethesda, Maryland. The high in New York on June 22 may be 81 degrees Fahrenheit (27 Celsius), 2 more than usual, according to AccuWeather Inc. in State College, Pennsylvania.
“We’re not seeing super-hot temperatures, so it doesn’t look like prices are going to get that type of support,” said Phil Flynn, a senior market analyst for Price Futures Group in Chicago. “The weather is going to be the key for this market.”
Natural gas for July delivery fell 3.6 cents, or 0.9 percent, to $3.778 per million British thermal units at 9 a.m. on the New York Mercantile Exchange. Trading volume was 13 percent below the 100-day average for the time of day. Prices have climbed 13 percent this year and have dropped 1.3 percent this week.
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