Largest Decline In 6 Years Seen For Natural Gas

Natural gas fell for a third day in New York, extending the steepest decline in more than six years on speculation that warmer U.S. weather will reduce demand for heating fuel.

The contract for March delivery, which expires today, dropped as much as 5.2 percent to $4.832 per million British thermal units in electronic trading on the New York Mercantile Exchange and was at $4.917 at 3:55 p.m. in Singapore. Prices are down 20 percent so far this week, and a settlement at current levels would mean the biggest three-day loss since August 2007. The more-active April contract declined 0.9 percent to $4.649. The volume for all futures traded was about 2 percent below the 100-day average.

Gas slid 6.4 percent yesterday to $5.096 per mmBtu, the lowest settlement since Feb. 12, after forecasters including MDA Weather Services said frigid weather in the Midwest and East will ease starting March 7. Futures climbed to a five-year high this month as below-normal temperatures boosted demand, pushing U.S. stockpiles to 10-year seasonal lows.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu