NEW YORK: US natural gas futures fell over 2% to more than a one-week low on Wednesday on forecasts for cooler weather, especially in the northeastern part of the US
Front-month gas futures for September delivery on the New York Mercantile Exchange settled 6.7 cents, or 2.5% lower, at $2.592 per million British thermal units (mmBtu). The contract fell nearly 5% on Tuesday.
Although the weather in the lower 48 states is forecast to remain hotter than normal through at least Aug. 31, it will be significantly milder during that period and heading into September than recently, especially in the heavily populated Northeast region. That is pulling back expectations for any late-season power sector demand for cooling, said Gary Cunningham, director of market research at Tradition Energy.
Data provider Refinitiv forecast US gas demand, including exports, would rise from 104.9 billion cubic feet per day (bcfd) this week to 106.6 bcfd next week. These numbers were higher from Tuesday’s forecast.
Refinitiv said average gas output in the Lower 48 states was 101.8 bcfd so far in August, matching the reading in July, and not far from a monthly record of 102.2 bcfd in May.
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