Natural gas prices fall even as storm brews near Gulf of Mexico
Published Oct 02, 2013 01:04PM ET
Updated forecasts predicted a weaker system than previous model runs, if a cyclone develops, which sent investors selling the commodity for profits.
On the New York Mercantile Exchange, natural gas futures for delivery in November traded at USD3.562 per million British thermal units during U.S. trading, down 1.30%.
The November contract settled up 1.38% at USD3.609 per million British thermal units on Monday.
The commodity hit a session low of USD3.554 and a high of USD3.646.
The National Hurricane Center said earlier an area of low pressure in the northwestern Caribbean Sea stood a 40% chance of developing into a tropical cyclone in the next two days and a 50% chance in five days as it heads into the southern Gulf of Mexico.
Weather forecasting models showed the storm tracks headed to the U.S. Gulf Coast, though some predicted a less intense system at landfall, if one develops, which allowed for profit-taking.
Tropical weather systems often disrupt production by prompting gas rig operators to evacuate offshore facilities.
The Gulf of Mexico is home to 10% of U.S. natural gas production.
Elsewhere, forecasts for seasonably mild temperatures across much of the U.S. pressured prices lower as well.
Demand for natural gas tends to wane at the country's thermal power plants as temperatures moderate, as homes and businesses throttle back on their air conditioners.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in November were up 1.68% and trading at USD103.75 a barrel, while heating oil for November delivery were up 1.17% and trading at USD2.9899 per gallon.
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Written By: Investing.com
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