Natural gas futures (NYMEX:NG) headed for the first weekly decline in four weeks on speculation that easing heat will limit demand for the power-plant fuel.
Gas in New York slid as much as 1.1 percent. MDA Weather Services predicted seasonal temperatures from Texas to the Northeast June 25 through June 29. A government report yesterday showed that gas supplies rose by more than 100 billion cubic feet for a sixth straight week, the longest triple-digit streak in data going back to 1994.
“The forecast in the short-term for Texas and Chicago, the heavy consuming areas, are showing cooler temperatures than normal,” said Santiago Diaz, energy trading associate at FCStone Latin America LLC in Miami. “We will have another injection number like yesterday. However, if we start to see those warm temperatures linger, then we could see support to the upside.”
Natural gas for July delivery fell 3.4 cents, or 0.7 percent, to $4.55 per million British thermal units at 9:42 a.m. on the New York Mercantile Exchange after dropping to $4.534, the lowest intraday price since June 12. Volume for all futures traded was 3.4 percent above the 100-day average. The futures fell 3.8 percent this week and are up 7.6 percent this year.