June 14, 2012 by NADCA in Industry News
Dow Jones Newswires (6/12, Strumpf, Subscription Publication) reports natural gas prices fell to a six-week low Monday as traders weighed warmer weather against supplies that remain at record levels. Natural gas for July delivery settled 8.1 cents, or 3.5 percent, lower at $2.218 a million British thermal units on the New York Mercantile Exchange, the lowest settlement price since April 27. Although MDA EarthSat Weather has forecast above- average temperatures in many parts of the Midwest and Northeast over the next two weeks, suggesting a rise in cooling demand in the short term, but according to the Energy Information Administration's weekly inventory report last week, supplies have reached 2.877 trillion cubic feet, which is the highest level ever for that time of year and 33% higher than the five-year average.
Reuters (6/12, Silha) adds that moderate weather forecasts for the Northeast and Midwest in the short term are also weighing on traders, despite hot weather in Texas.