Warmer-Than-Normal Weather Forecasts Curb Natural Gas Demand
Natural gas futures slumped to the lowest levels in 17 years yesterday as warmer-than-normal weather forecasts curb demand.
April natural gas (NGJ16) fell by 2.5% on Thursday, finishing at $1.63 per million British thermal units. Natural gas prices have been in a steady decline this winter as an oversupply of the heating fuel holds fast as winter heating demands remain low.
NOAA’s Climate Prediction Center (CPC) continues to show above-normal temperature forecasts across the Continental United States well into March. Temperatures between 10 to 20 degrees warmer than normal are expected to impact major cities like New York City, Philadelphia and Boston.
In a forecast discussion issued daily by the NOAA’s Weather Prediction Center, Forecaster Allison Santorelli commented on the upcoming warm pattern: “A warming trend is in store for portions of the Central and Eastern US underneath the building ridge. Daytime temperatures could be 10 to 20, or even up to 30 degrees above normal.”