U.S. natural gas futures saw the biggest weekly drop since February

as forecasts for unseasonably warm weather spurred concern that a mild winter will erode demand for the heating fuel, according to Bloomberg.

“The realization that we will have a later start to winter has started to turn the market,” Gene McGillian, manager of market research at Tradition Energy in Stamford, Connecticut, said by phone. “November is supposed to be above normal and some forecasts are showing December will come in mild.”

Gas futures for November delivery slipped 14.8 cents, or 4.7 percent, to settle at $2.993 per million British thermal units on the New York Mercantile Exchange. That was the first settlement below $3 since Oct. 4. Futures dropped 8.9 percent this week, the biggest decline since Feb. 5.

The record warmth is contraindicated by a Noreaster heading our way with snow accumulation, according to Weather.com.  Some locations saw a half a foot or more of accumulation.

weather_forecast_chill

 

The Noreaster will present much colder temperatures and the more usage of natural gas which presents a buying opportunity from the drubbing of 3.33% or $0.23 drop in CHK on Friday.

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