Bloomberg reports today: Natural gas fell for the sixth time in seven days as high temperatures across the northern U.S. reduced the need for the heating fuel.
Temperatures will top normal by as much as 20 degrees in parts of the northern Midwest today and tomorrow, said EarthSat, a private forecaster owned by MDA Federal Inc. The trend is expected to continue across most of the country through Jan. 20, paring demand for gas as residences and businesses curtail furnace use.
“We’ve been reducing our positions in energy companies,” said Harry Chernoff, a hedge-fund adviser at Pathfinder Capital Advisors LLC in Great Falls, Virginia. It’s a “sector that has the potential to get hit hard if natural-gas prices come off a bit more. There’s considerable price risk.”
The mild weather recently hasn’t forced utilities to dip into stored reserves, something that’s common in winter as demand peaks and pipelines can’t ship enough to meet it.