Rising Supplies Magnified By Warmer-than-normal Weather Weigh on Natural Gas
Oct, 31st 15:56
U.S. natural gas slumped on Monday after a jump in early Asian trade, as warmer-than-usual weather in most part of the U.S has dampened demand for the heating fuel.
Natural gas for December delivery on the New York Mercantile Exchange reached the highest level since Oct. 20 at $3.163 per million Btu before sliding to as low as $3.055 per million Btu.
According to the updated weather forecast, high pressure weather systems, which result in much warmer than normal conditions, will reign on the central and southern U.S. – key gas-consuming regions – this week.
Natural gas traders are waiting for weekly supply data due on Thursday, which is expected to show a build in a range between 49 and 59 billion cubic feet in the week ended October 28.
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