US Natgas Futures Slide on Profit Taking Amid Warmer Weather Forecasts
US natural gas futures declined on Friday as traders locked in profits ahead of the weekend. The price slipped 2.6 cents, or 0.9%, to settle at $2.888 per million British thermal units (mmBtu) for October delivery on the New York Mercantile Exchange (NYMEX). This marked a third consecutive weekly gain, with prices increasing by 4.2%.
According to Robert DiDona, president of Energy Ventures Analysis, there was some sell-side interest after the big price response this week. He stated that there's just some 'sell-side interest after the big price response we've seen this week. So probably a little repositioning or profit taking ahead of the weekend.'
Despite the decline, forecasters predict mostly warmer-than-normal temperatures through September 11, with Cooling Degree Days standing at 208 on Friday compared to 112 during the same period last year.