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Natural gas futures plunge over 8% on over supply, warm winter

Published 01/31/2012, 03:45 PM
Updated 01/31/2012, 03:47 PM
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Investing.com -  Natural gas prices dropped for the fourth day Tuesday, on over supply and warm weather.
 
On the New York Mercantile Exchange, natural gas futures for March delivery traded at USD2.47 per million British thermal units during late U.S. trade, plunging 8.72%.  

It traded at a high of USD2.67 per BTU and is currently trading at the sessions low of USD2.47 per BTU
 
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.

However, the group has revised its forecasts stating, "the forecast has taken a major warm shift."
 
Earlier,  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 The drawdown was above the 184 billion cubic feet withdrawn in the same week a year earlier.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.
 
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in March gave back 0.33% to trade at USD98.45 a barrel.



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