Natural gas for next-day delivery at the Tetco-M3 hub in the U.S. Northeast fell the most in seven years on forecasts of milder weather that may reduce demand for the heating fuel.
Gas prices at the hub, which serves the New York City region, plunged 57 percent on the Intercontinental Exchange, the biggest one-day decline since Jan. 15, 2004. The low temperature in New York tomorrow may be 18 degrees Fahrenheit (minus 8 Celsius), 12 degrees higher than today’s low, according to Weather Underground Inc. in Ann Arbor, Michigan.
“Temperatures are expected to moderate over the next couple of days, and that’s taking some of the froth out of this market,” said Mike Fitzpatrick, a partner at Kilduff Group, a New York-based energy advisory company.
Wholesale natural gas for next-day delivery at Tetco-M3 dropped $9.5449 to $7.2171 per million British thermal units, according to Intercontinental Exchange.
Gas for next-day delivery at Transco-Zone 6, which also transports gas to the New York region, fell $10.807, or 57 percent, to $8.104 per million Btu, the biggest decline since Jan. 3, 2008.
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