Forecasts for mild weather in the eastern United States in January lowered the demand for natural gas and dropped the futures 3.4 percent, reducing what is the first annual gain in the last five years. The gain had been accomplished after power plants managed to burn through natural gas reserves in what was described as an unusually hot summer, but above-normal winter temperatures will create another natural gas surplus, according to predictions from MDA Weather Services in Maryland and Schork Group Inc. in Pennsylvania. February delivery of natural gas dropped 11.8 cents and the futures trading volume closed 54% below the one hundred day average to begin the new year.
Read the full article here: Natural Gas Futures Fall on Forecasts for Milder U.S. Weather