Natural gas futures (NYMEX:NGQ14) traded near a seven-month low in New York as forecasts showed a shift to hotter weather after below-normal temperatures this week.
The weather may be warmer than usual in most of the contiguous U.S. from July 23 through July 27, according to MDA Weather Services. Prices tumbled below $4 per million British thermal units yesterday for the first time since Jan. 10 after government data showed a 13th straight larger-than-normal increase in gas stockpiles.
“We still have two months of summer left,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “Unless we really don’t get any cooling demand, the market should start to find support.”
Natural gas for August delivery rose 0.2 cent to $3.956 per million British thermal units at 9:21 a.m. on the New York Mercantile Exchange. Volume for all futures traded was 16 percent below the 100-day average. Gas slid to $3.936 per million Btu in intraday trading yesterday, the lowest since Dec. 2. Futures have declined 4.6 percent this week.