Log in
Login
Password
Remember
Lost password
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Commodities  >  World (autre bourse)  >  NYMEX Henry-hub gas       

SummaryNews 
News SummaryAll news 

Natural Gas Tumbles to Two-Week Low as Weather Turns Warmer

01/28/2013 | 10:21am US/Eastern

--Gas prices extend decline for third session

--Prices drop to two-week low on expectations for warmer weather

--Traders say the coldest part of winter is behind them

 
   By Nicole Hong 
 

NEW YORK--Natural gas futures plunged 4% to a two-week low Monday, extending declines from last week on expectations for warmer weather.

Private forecaster Commodity Weather Group predicts higher-than-normal temperatures in the Midwest and Northeast, both regions are heavy users of natural gas to heat homes Warmer temperatures translate in to less demand for the fuel.

In addition, CWG meteorologist Jason Setree said that after a brief cold period projected for the end of the week, temperatures are expected to stay above the 30-year average.

Traders have been selling natural-gas futures on the expectation that "the coldest part of winter is behind us," said Tom Saal, a broker at INTL Hencorp Futures. "Historically, this is the time of season where you have the coldest weather."

Natural gas for February delivery dropped 13.9 cents, or 4%, to recently trade at $3.316 a million British thermal units on the New York Mercantile Exchange.

After colder-than-normal weather pushed gas prices higher since early January, prices started to tumble last Thursday on forecasts for rising temperatures. Gas futures have fallen more than 6% in the past three sessions since warmer weather would lower gas demand and put pressure on prices.

Even the coldest temperatures in early January were unable to "boost storage withdrawals appreciably," said Jim Ritterbusch, an analyst at Ritterbusch & Associates, putting extra pressure on gas prices. U.S. gas inventories released last week showed gas storage was 12% above the five-year average, which means gas supply is still outpacing demand.

Natural gas for next-day delivery at the benchmark Henry Hub in Louisiana recently traded at $3.2325/MMBtu, according to IntercontinentalExchange, compared with Friday's average of $3.4188/MMBtu. Natural gas for next-day delivery at Transcontinental Zone 6 in New York traded at $3.77/MMBtu, down from $10.911/MMBtu.

Write to Nicole Hong at nicole.hong@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

React to this article
Latest news on NYMEX HENRY-HUB GAS
02/11DJLONDON MARKETS : FTSE 100 Knocked To Lowest Since 2012 As Financials, Resources ..
02/11DJLONDON MARKETS : FTSE 100 Hits Lowest Since 2012 As Rio Tinto Swings To Loss
02/11DJLONDON MARKETS : FTSE 100 Dragged Down By Miners After Rio Tinto Swings To Loss
02/10DJLONDON MARKETS : U.K. Stocks Wobble After Sinking To Three-year Low
02/09DJLONDON MARKETS : FTSE 100 Flops As Investors Search For Safety
02/08DJTotal Starts North Sea Gas Project Despite Low Oil Prices
02/08DJLONDON MARKETS : FTSE 100 Slammed By Growth Fears, Oil Rout
02/08DJLONDON MARKETS : FTSE 100 Slammed By Growth Fears, Oil Rout
02/08DJChesapeake, Its Stock Tanking, Tries to Allay Bankruptcy Fears
02/08DJLONDON MARKETS : FTSE 100 Stuck In Tight Range After Last Week's Selloff
Advertisement