Tropical Storm Ernesto is a tricky storm, looking ragged last night and intensifying quickly this morning. It may have the energy to hang a right turn into the Gulf of Mexico proper rather than heading across Mexico.
The front futures were trading at $2.846, down 3.1 cents. Last Tuesday the nearby contract rose as high as $3.277
From the Wall Street Journal:
Natural gas futures aimed lower Monday, falling for the fifth-straight session as traders weighed forecasts for cooler temperatures against the steep declines of the past week.
Natural gas for September delivery fell 2.7 cents, or 0.9%, to recently trade at $2.850 a million British thermal units on the New York Mercantile Exchange. Futures traded as high as $2.892/MMBtu earlier in the session.
Gas prices wavered between gains and losses early in Monday's trading. After a sharp fall last week, some investors expect the market to be poised to rebound, if only briefly. Meanwhile, others are keeping watch on forecasts that suggest some relief from hot weather across much of the U.S.
Temperatures across the U.S. are seen to be retreating from well above normal levels earlier this summer, according to the forecaster WSI Energycast. In a forecast for the next week, the group said it expects average temperatures in the Midwest and along the East Coast. In its 11-to-15-day forecast, however, temperatures are expected to creep higher....MORE