Natural gas futures decline on bigger-than-forecast supply gain

Hotter Weather

Temperatures across most of the lower 48 states will be above normal from June 25 through July 14, according to MDA Weather Services in Gaithersburg, Maryland. The high in Boston on June 24 may be 90 degrees Fahrenheit (32 Celsius), 11 higher than usual, and Houston may reach 99 degrees on July 2, 8 above normal, said AccuWeather Inc. in State College, Pennsylvania.

Electricity generators, the largest consumers of U.S. gas, will account for 32% of demand in 2013, according to the EIA.

U.S. gas output will rise to an all-time high for the sixth straight year as new wells come online at shale formations, such as the Marcellus in the Northeast. Marketed gas production will average a record 70.01 billion cubic feet a day this year, up 1.2% from 69.18 billion in 2012, the EIA said June 11 in its monthly Short-Term Energy Outlook.

“After stabilizing in 2013, gas output will rise strongly” from 2014 through 2018 as higher prices spur drilling and expanded infrastructure allows more shale supplies to reach the market, the International Energy Agency said in its Medium- Term Market Report, released today.

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