Natural gas futures may decline next week as moderate weather limits demand for the power-plant and heating fuel, boosting stockpiles, a Bloomberg survey showed.
Natural gas futures fell the most in seven months in New York after government reports showed bulging U.S. inventories and rising production.
The natural gas glut that’s straining drillers is creating a bonanza for pipeline operators, spurring the biggest increase in exports to Mexico and Canada since the 1970s.
Canadian natural gas fell as nuclear power plants came back into service in the U.S. following seasonal maintenance, cutting demand for power generation from other fuels.
U.S. natural-gas supplies probably climbed by less than the seasonal average last week as above- normal temperatures increased demand from power plants, according to analyst forecasts compiled by Bloomberg.
Canadian natural gas for June delivery rose for the first day in five as traders sought bargains and covered bets on earlier declines.
Canadian natural gas slipped after the U.S. government reported a higher-than-expected increase in gas supplies, indicating that demand for imports may weaken.
Natural gas futures dropped to a 15- week low in New York on speculation that unusually mild weather next week will curtail demand for the heating fuel.
Natural gas inventories fell by less than average last week as warm weather reduced heating-fuel demand, analyst forecasts compiled by Bloomberg show.
Canadian natural gas climbed on forecasts of above-normal temperatures that may increase demand for the fuel to generate electricity.
"A combination of strong storage builds over the next few weeks and a lack of stressful weather will be the prime catalysts for lower prices."
- Martin King on May 10, 2013