Investing.com - Natural gas futures fell sharply during U.S. morning trade on Monday, as forecasts for warm weather hit the outlook for heating demand for the fuel.
On the New York Mercantile Exchange, natural gas futures for delivery in January traded at USD3.445 per million British thermal units during U.S. morning trade, down 3.0% on the session.
The Commodity Weather Group said Monday weather will be “much warmer” in the coming six-to 10 days than it forecast on Friday.
The CWG also said the second half of December would be warmer than previously expected, but weather would be cooler than last week.
Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting forecasts for early-December on heating demand.
The heating season from November through March is the peak demand period for U.S. gas consumption.
Natural gas futures touched a 14-month high of USD4.001 per million British thermal units on November 26, amid expectations of a cold winter and an increase in heating demand.
The U.S. Energy Information Administration said in its weekly report on Thursday that natural gas storage in the U.S. fell by 73 billion cubic feet in the week to November 30, compared to expectations for a decline of 64 billion cubic feet, but remained above the five-year average for the period.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in January were up 0.59% to trade at USD86.44 a barrel, while heating oil for January delivery eased up 0.14% to trade at USD2.9196 per gallon.
On the New York Mercantile Exchange, natural gas futures for delivery in January traded at USD3.445 per million British thermal units during U.S. morning trade, down 3.0% on the session.
The Commodity Weather Group said Monday weather will be “much warmer” in the coming six-to 10 days than it forecast on Friday.
The CWG also said the second half of December would be warmer than previously expected, but weather would be cooler than last week.
Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting forecasts for early-December on heating demand.
The heating season from November through March is the peak demand period for U.S. gas consumption.
Natural gas futures touched a 14-month high of USD4.001 per million British thermal units on November 26, amid expectations of a cold winter and an increase in heating demand.
The U.S. Energy Information Administration said in its weekly report on Thursday that natural gas storage in the U.S. fell by 73 billion cubic feet in the week to November 30, compared to expectations for a decline of 64 billion cubic feet, but remained above the five-year average for the period.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in January were up 0.59% to trade at USD86.44 a barrel, while heating oil for January delivery eased up 0.14% to trade at USD2.9196 per gallon.