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Natural gas extends losses on warm weather forecasts, rising supplies

Published 12/14/2012, 01:49 PM
Updated 12/14/2012, 01:50 PM
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Investing.com - Natural gas futures extended Thursday's losses into Friday on forecasts for warm weather to continue across much of the northeastern U.S.

Rising supply figures continued to keep prices down as well

On the New York Mercantile Exchange, natural gas futures for delivery in January traded at USD3.340 per million British thermal units, down 0.22%.

Weather forecasts earlier this week predicted mild temperatures to run for the next two weeks for a large swathe of the country, including the heavily populated northeastern U.S.

Warm weather cuts into demand for heating in the country's businesses and homes, a key driver of natural gas prices.

The heating season from November through March hikes demand for U.S. natural gas.

Rising supplies pushed prices down as well.

The U.S. Energy Information Administration reported earlier this week that natural gas storage in the U.S. in the week ended December 7 rose by 2 billion cubic feet, compared to expectations for a decline of 4 billion cubic feet, which further pushed down prices.

Total U.S. natural gas storage stood at 3.806 trillion cubic feet as of last week. Stocks were 48 billion cubic feet higher than last year at this time and 283 billion cubic feet above the five-year average of 3.523 trillion cubic feet for this time of year.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in January were up 0.91% and trading at USD86.87 a barrel, while heating oil for January delivery were up 1.20% and trading at USD2.9792 per gallon.







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