US natural gas futures fell on Tuesday to their lowest in over two weeks on forecasts indicating warmer weather than previously anticipated, which will result in a reduction of heating demand.
Front-month gas futures for January delivery on the New York Mercantile Exchange were down 4.2 cents, or 1.9%, to settle at $2.172 per million British thermal units (mmBtu), their lowest since December 9.
The market will be closed on Wednesday for Christmas Day.
"This market is seeing further selling, largely predicated upon an extension of mild temperature views that are now stretching through the first week of January in most cases," Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois, said in a report.
Data provider Refinitiv estimated warmer-than-normal temperatures in the Lower 48 US states over the next two weeks. It projected 372 heating degree days (HDDs) in the time period, lower than the 385 HDDs estimated on Monday, which is indicative of warming weather.
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