Natural Gas Suffers from Profit Taking, but Ends Week Up 10 Percent

Reuters reported that long-term forecasts for mild weather have dampened US natural gas futures, which declined for the second day in a row. End-of-week profit taking also brought prices down.

As quoted in the market news:

“We had a heck of a run-up earlier in the week. I think people are looking at the (milder) weather and deciding to take a little profit off the table,” a New England-based trader said.

Weakness up front on Friday widened spreads to winter months, with the January premium to October gaining 3.6 cents, or 7.5 percent, to close at 51.3 cents. That spread settled on Tuesday at 45.8 cents, its smallest in nearly 2-1/2 months.

Despite two days of selling, gas prices ended the week up about 10 percent.

Click here to read the full Reuters report.