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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