bloomberg - nat gas dropping on next week mild forecast
Natural gas futures declined for a second day in New York as forecasts for mild weather next week signaled reduced demand for the heating fuel.
Gas fell as much as 1.3 percent as MDA Weather Services in Gaithersburg, Maryland, said a cold snap in the eastern U.S. this week will give way to above-normal temperatures over the next six to 10 days.
“We do have a bit of a warm streak that is coming down the pipe,” said Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York. “The market was pretty overbought and you could definitely justify a bit of a pullback here.”
Natural gas for February delivery dropped 3.2 cents, or 0.9 percent, to $3.526 per million British thermal units at 9:03 a.m. on the New York Mercantile Exchange. Prices yesterday rose to $3.645, the highest intraday price since Dec. 7, before declining. Trading volume was 34 percent above the 100-day average. Gas has climbed 5.2 percent this month.