Natural Gas drops as forecasts point to warming trend across U.S.
Published Apr 24, 2013 02:09PM ET
On the New York Mercantile Exchange, natural gas futures for delivery in June traded at USD4.226 per million British thermal units, down 1.20%.
Forecasts for seasonably warm temperatures gripping much of the country sent prices falling, as warmer weather cuts into demand for heating in the nation's businesses and homes.
Prices have remained high in recent weeks due to below-normal temperatures remaining in place for much of March and early April.
Trading was a little edgy, as investors began to bet on when hotter temperatures will arrive, which will hike demand for air conditioning across the U.S. and send natural gas prices rising anew.
Natural gas prices are very sensitive to weather reports, as about half of the country relies on the commodity for heating.
Investors were also bracing for Thursday's supply data.
Early injection estimates for this week’s storage data range from 24 billion cubic feet to 48 billion cubic feet. Inventories rose by 43 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a rise of 50 billion cubic feet.
Typically this time of year, stockpiles begin to climb with the arrival of warmer spring temperatures.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in June were up 2.44% and trading at USD91.36 a barrel, mainly due to reports that U.S. stockpiles rose less than expected last week, while heating oil futures for May delivery were up 1.02% at USD2.8403 per gallon.
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Written By: Investing.com
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