Natural gas price dropped for the third time in four days in New York as demand plummeted during the air conditioning season, allowing more of the fuel to be channeled to inventories.
MDA WeatheNatural gas price dropped for the third time in four days in New York as demand plummeted during the air conditioning season, allowing more of the fuel to be channeled to inventories.r Services temperatures will fall below usual from East Cost to the Rocky Mountains in the next couple of days, with lower temperatures being consistently recorded in the central US through Aug. 13. Gas has retreated 23% from a 15-week intraday peak on June 16, as stockpiles soared during the first half of the storage season at the fastest rate since 2001.
“The primary factors are still bearish, and it looks like this steady six-week slide is starting to pick up again. With the weather forecasts pointing to very much mild weather across the eastern two-thirds of the U.S. in the next two weeks, and record gas coming out of the ground, the market doesn’t have a lot going on right now,” Gene McGillian of Stamford, Connecticut-based Tradition Energy told Bloomberg.
September-delivery natural gas retreated 5.6 cents or 1.5% to $3.768 per million British thermal units as of 12:37 pm on the New York Mercantile Exchange. Trading at the exchange was 21% lower the average for past 100 day average.
MDA said East Coats temperatures will return to seasonal normalcy from Aug.4 to Aug. 13.
Also, surging production from nuclear plants is hurting demand for gas in production of electricity. Nuclear output advanced 0.2% today to 94, 389 megawatts after Connecticut and Georgia resumed production in two plants.
According to Business Standard, natural gas is losing its luster, after enjoying substantial speculative focus six months ago on the Multi Commodities Exchange.
In February, the volume of natural gas traded accounted for 23% of the MCX business, and some days it hit quite huge volumes as speculators lost interest in gold.
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