U.S. Natural Gas Futures Fall on Mild Weather Outlook

Dow Jones10-30 04:24

1624 ET - U.S. natural gas futures settle lower with the December contract retreating from the $3 level in its debut at the front of the curve. Near-term weather forecasts remain warmer than usual, pointing to weak heating demand for the first part of November. The EIA reported an 80 Bcf storage build for last week, which was bigger than to 70 Bcf estimate in a WSJ survey of analysts, and slightly above the 77 Bcf five-year average for the week. "Prices were already pushing lower this morning prior to the storage report, and the bearish nature of the data did little to alter that trajectory," Andy Huenefeld of Pinebrook Energy Advisors says in a note. "If current weather forecasts hold, we could see at least four additional builds before the scales tip to net withdrawals." Nymex natural gas settles down 2.6% at $2.952/mmBtu.

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