NEW YORK: Natural gas futures fluctuated in New York as hot weather forecast for the eastern U.S. next week will be followed by below-normal temperatures.
Gas fell as much as 1.9% and rose 1.7%. The high in New York will reach 90 degrees Fahrenheit (32 Celsius), 11 degrees above normal, on June 15 before dropping to 69 on June 18, 11 below normal, according to AccuWeather Inc.
Rising demand from power plants would help reduce a gas surplus that was 35% above the five-year average at the end of May.
“At this point in June, a few degrees above normal isn’t going to make a huge difference,” said Brad Florer, a trader at Kottke Associates LLC in Louisville, Kentucky.
Natural gas for July delivery fell 0.2 cent to US$2.444 per million British thermal units at 10:15 a.m. on the New York Mercantile Exchange. The futures, have dropped down 18% this year.
The high in Washington on June 11 will be 91 degrees Fahrenheit, 8 above normal, before dropping to 74 degrees on June 19, 11 below normal, according to AccuWeather in State College, Pennsylvania.
Gas inventories rose 71 billion cubic feet to 2.815 trillion in the week ended May 25, the Energy Department said last week. Supplies probably increased by 59 billion cubic feet in the week ended June 1, based on the median of 16 analyst estimates compiled by Bloomberg. .
The department is scheduled to report on last week’s stockpile changes tomorrow. (Bloomberg/T07)