Natural gas dips as weather forecasts stay mild
Published Oct 24, 2014 01:33PM ET
Natural gas prices fall as cold weather seen holding north of heavily populated eastern U.S.
Investing.com - Natural gas prices moved lower on Friday after updated weather-forecasting models continued to call for mild autumn temperatures to hold across much of the U.S. and curb demand for both heating and air conditioning, prompting thermal power plants to burn less of the commodity as a result.
On the New York Mercantile Exchange, natural gas futures for delivery in November were down 0.50% at $3.604 per million British thermal units during U.S. trading. The commodity hit a session low of $3.560, and a high of $3.666.
The November contract settled down 1.01% on Thursday to end at $3.622 per million British thermal units.
Natural gas futures were likely to find support at $3.545 per million British thermal units, the low from Nov. 19, 2013, and resistance at $3.718, Wednesday's.
Updated weather-forecasting models called for mild temperatures across much of the U.S. into early November, and while a blast of cold air could make their way into the northern U.S. in the coming week or two, uncertainty as to how far south it could reach kept natural gas prices in negative territory.
"If there were additional sub-freezing weather systems to follow it would be different, but the storms that impact the U.S. around November 4-7th will likely again be over the Northwest and Northeast corners," Natgwasweather.com reported in its Friday midday update.
"This simply leaves too much of the U.S. under pleasant conditions and should result in another larger than normal build for early November."
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in December were down 1.04% at $81.24 a barrel, while heating oil for November delivery were down 0.61% at $2.4838 per gallon.
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Written By: Investing.com
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