Natural Gas Falls on Mild Long-Term Forecasts
Natural gas prices fell for a second session early Monday as long-term forecasts expect cooler than seasonal weather is on the way for big eastern markets.Gas for July delivery was last seen down $0.05 to US$3.07 per million British thermal units.The drop comes as long-term forecasts from the National Weather Service expect most states east of the Rocky Mountains to see cooler than seasonal temperatures over its six to 10 day forecasts, cutting into cooling demand."Bearish weather for the next two weeks have trimmed back power sector demand projections from where they were last week. Some models are showing daily power demands for gas falling by nearly 20% compared to Friday," Gary Cunningham, Director of Market Research at Tradition Energy wrote.Supply remains robust. In its weekly survey, the Energy Information Administration last week reported stocks of fuel rose by 108-billion cubic feet, leaving inventories at 2.69-trillion cubic feet, 6% above the five-year average.