Natural gas falls on forecasts of warm temperatures

Natural gas futures fell in New York for the first time in three days on Wednesday on forecasts of unseasonably warm weather.Natural gas futures fell in New York for the first time in three days on Wednesday on forecasts of unseasonably warm weather.

Gas fell 1.4 percent as weather forecasters said the eastern and central parts of the U.S. would experience normal or above normal temperatures through March 2. Natural gas prices have fallen 11 percent this year as near record production offset fears stoked by larger than average supply declines caused by cold weather.Gas fell 1.4 percent as weather forecasters said the eastern and central parts of the U.S. would experience normal or above normal temperatures through March 2. Natural gas prices have fallen 11 percent this year as near record production offset fears stoked by larger than average supply declines caused by cold weather.

Phil Flynn, the vice president of research at PFGBest, told Bloomberg the unpredictable winter weather has left the market unsure of how to price the commodity. "We went from record low temperatures to above average temperatures in most of the country," affirmed Flynn. "This market's like a limbo stick right now. Everyone's wondering how low we can go."Phil Flynn, the vice president of research at PFGBest, told Bloomberg the unpredictable winter weather has left the market unsure of how to price the commodity. "We went from record low temperatures to above average temperatures in most of the country," affirmed Flynn. "This market's like a limbo stick right now. Everyone's wondering how low we can go."

Wednesday on the New York Mercantile Exchange, natural gas for March delivery declined by 5.5 cents to settle at $3.92 per million British thermal units. Gas prices are currently 26 percent lower than year-ago levels.Wednesday on the New York Mercantile Exchange, natural gas for March delivery declined by 5.5 cents to settle at $3.92 per million British thermal units. Gas prices are currently 26 percent lower than year-ago levels.

Weather Derivatives stated in a report that U.S. heating demand from February 22 through February 26 could be 7 percent below average.  Weather Derivatives stated in a report that U.S. heating demand from February 22 through February 26 could be 7 percent below average.