Investing.com - Natural gas prices dropped for the third day Wednesday, as U.S. over supply concerns and a mild winter continue to weigh on the heating fuel.
On the New York Mercantile Exchange, natural gas futures for March delivery traded at USD2.36 per million British thermal units during late U.S. trade, plunging 5.65%.
It traded at a high of USD2.47 per BTU and hit a low of USD2.36 per BTU earlier in the session.
Natural gas prices have plummeted nearly 17% since Monday. Yesterday, prices booked the largest January loss in three years spiking down 7.8% on forecasts of continued mild winter weather and increased production levels signaled no end to the supply glut.
Industry weather group, MDA EarthSat stated on Friday that it forecasts colder than normal temperatures throughout the U.S. east coast and southern states over the next 11 to 15 days, resulting in a short lived rally, last week, in the heating fuel
Earlier, adding to the bearish environment, The U.S. National Oceanic and Atmospheric Administration stated that it expects the warmer than normal winter temperatures on the East Coast, Midwest and much of the Southwest to continue through mid February adding to the long term bearish sentiment.
Official data last week indicated that U.S. gas supplies fell by 192 billion cubic feet. The drawdown was above the 184 billion cubic feet withdrawn in the same week a year earlier. It also topped the five year average withdraw of 173 billion cubic feet for the week.
Despite this significant drop, inventories remain at their highest level ever for this time of year. Total U.S. natural gas storage stood at 3.098 trillion cubic feet as of last week.
Morgan Stanley cut its 2012 natural gas price forecast by almost 30% to an average USD2.70 per BTU.
Traders are anticipating Thursday`s U.S. Energy Information Administration`s weekly report on U.S. natural gas stockpiles to ascertain current conditions.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in March gave back 1.19% to trade at USD97.31 a barrel.
On the New York Mercantile Exchange, natural gas futures for March delivery traded at USD2.36 per million British thermal units during late U.S. trade, plunging 5.65%.
It traded at a high of USD2.47 per BTU and hit a low of USD2.36 per BTU earlier in the session.
Natural gas prices have plummeted nearly 17% since Monday. Yesterday, prices booked the largest January loss in three years spiking down 7.8% on forecasts of continued mild winter weather and increased production levels signaled no end to the supply glut.
Industry weather group, MDA EarthSat stated on Friday that it forecasts colder than normal temperatures throughout the U.S. east coast and southern states over the next 11 to 15 days, resulting in a short lived rally, last week, in the heating fuel
Earlier, adding to the bearish environment, The U.S. National Oceanic and Atmospheric Administration stated that it expects the warmer than normal winter temperatures on the East Coast, Midwest and much of the Southwest to continue through mid February adding to the long term bearish sentiment.
Official data last week indicated that U.S. gas supplies fell by 192 billion cubic feet. The drawdown was above the 184 billion cubic feet withdrawn in the same week a year earlier. It also topped the five year average withdraw of 173 billion cubic feet for the week.
Despite this significant drop, inventories remain at their highest level ever for this time of year. Total U.S. natural gas storage stood at 3.098 trillion cubic feet as of last week.
Morgan Stanley cut its 2012 natural gas price forecast by almost 30% to an average USD2.70 per BTU.
Traders are anticipating Thursday`s U.S. Energy Information Administration`s weekly report on U.S. natural gas stockpiles to ascertain current conditions.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in March gave back 1.19% to trade at USD97.31 a barrel.