Warm Weather Impacting Natural Gas Prices
USAgNet - 10/20/2016
U.S. natural gas futures tumbled the most in six weeks as forecasts showed warm weather through the end of October, stoking concern that a mild winter will limit heating demand for a second year, reports Bloomberg News.
Above-normal temperatures will prevail across most of the lower 48 states through Nov. 2, according to MDA Weather Services. The high in Chicago on Oct. 27 may be 64 degrees Fahrenheit (18 Celsius), 6 more than normal.
The gas rally to a 22-month high may be running out of steam on speculation that consumption of the fuel will be muted over the next few months, allowing a stockpile glut to expand. Prices had surged earlier in October as record demand from power plants and
a slowdown in gas production from shale formations helped trim a supply surplus.
Gas futures for November delivery slipped 9.3 cents, or 2.9 percent, to settle at $3.17 per million British thermal units on the New York Mercantile Exchange, falling the most since Sept. 1.