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By Alison Sider

Natural gas prices fell Monday amid mild weather that is likely to limit demand. Natural gas for November delivery fell 9.9 cents, or 3.29%, to $2.908 a million British thermal units on the New York Mercantile Exchange. Weather forecasts over the weekend were mixed, and temperatures are likely to be relatively mild in the coming weeks. That limits the need for natural gas either as heating fuel or to power increased electricity use to run air conditioners. Kyle Cooper, a consultant at Ion Energy Group, said data released by pipeline companies over the weekend indicated there were large injections of natural gas into storage facilities. “It’s early October–there’s no A/C demand, no heating demand–this is the peak of shoulder season,” he said. “This is when demand for natural gas is lowest.” At the same time, natural gas production has remained strong. “Although exports appear to be on the upswing and imports are being restrained, production has proven stronger than we had anticipated in adding to recent downside price pressures,” Jim Ritterbusch, president of Ritterbusch & Associates, wrote in a client note.

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