Natural gas down on U.S. weather forecast

Natural gas futures declined on Monday in trading in their biggest drop in three months on forecasts for milder weather in the coming week.Natural gas futures declined on Monday in trading in their biggest drop in three months on forecasts for milder weather in the coming week.

Gas dropped to its lowest price in more than six weeks as the National Weather Service said that temperatures will be higher than usual in the U.S. east coast and Midwest from February 12 to February 16; that forecast stands in sharp contrast to the snowy conditions and freezing temperatures that most of the country has experienced over the past four weeks. Gas dropped to its lowest price in more than six weeks as the National Weather Service said that temperatures will be higher than usual in the U.S. east coast and Midwest from February 12 to February 16; that forecast stands in sharp contrast to the snowy conditions and freezing temperatures that most of the country has experienced over the past four weeks.

Furthermore, the U.S. Department of Energy last week announced that domestic stockpiles of gas are 0.2 percent above the five-year average. Carl Neill, an energy consultant at Risk Management, told Bloomberg that seasonal temperatures would help cool demand for natural gas: "It's gradually getting warmer and you are having declining winter-heating needs," he affirmed. "The storage draws are big and strong but they just haven't been overwhelming enough to really draw down storage to below average levels." Furthermore, the U.S. Department of Energy last week announced that domestic stockpiles of gas are 0.2 percent above the five-year average. Carl Neill, an energy consultant at Risk Management, told Bloomberg that seasonal temperatures would help cool demand for natural gas: "It's gradually getting warmer and you are having declining winter-heating needs," he affirmed. "The storage draws are big and strong but they just haven't been overwhelming enough to really draw down storage to below average levels."

Monday on the New York Mercantile Exchange, natural gas for March delivery declined 3.6 percent to $4.160 per million British thermal units; earlier in trading, futures touched $4.104 per million British thermal units, their lowest settlement since December 23. Monday on the New York Mercantile Exchange, natural gas for March delivery declined 3.6 percent to $4.160 per million British thermal units; earlier in trading, futures touched $4.104 per million British thermal units, their lowest settlement since December 23.

Natural gas futures are currently trading at levels 26 percent lower than the year prior. Natural gas futures are currently trading at levels 26 percent lower than the year prior.