One day after seeing their biggest fall in six years, natgas futures climbed down another 8%, signaling the imminent end of the February rally.
Contracts for April delivery fell about 7% to close under $US5/mmBtu for the first time in more than a week.
Yesterday the National Weather Service’s Global Forecast System model boosted its temperature forecastfor the Midwest from March 6 to March 10, Bloomberg reported.
“As the more medium-to-long term picture of an oversupplied market is still intact, it shouldn’t be entirely surprising that a sharp and volatile giveback has manifested out of a near doubling of prices since early November 2013,” TD Securities’ Mark Dragosits said in a note.
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