Natural gas futures posted the biggest drop in six months as forecasts for cooler U.S. weather signaled reduced demand from power plants.
A burst of heat in the Midwest and East over the next five days will give way to seasonal readings from Sept. 7 through Sept. 16, said Commodity Weather Group LLC. Gas stockpile gains have outpaced the five-year average for 19 consecutive weeks as the U.S. experienced the coolest June through August since 2009, based on population- and energy-weighted demand, according to Commodity Weather.
“There’s some heat, but forecasts don’t look too extreme,” said Tom Saal, senior vice president of energy trading at FCStone Latin America LLC in Miami. “With weaker weather maybe some people are expecting the storage injection to get back into triple-digits.”