Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting forecasts on winter heating demand.
On the New York Mercantile Exchange, natural gas futures for delivery in January fell 1.4% Friday to settle at USD3.300 per million British thermal units by close of trade.
The January contract touched a low of USD3.263 per million British thermal units earlier in the session, the weakest level since September 28.
On the week, front-month natural gas prices plunged 6.85%, the third consecutive weekly decline.
Warmer-than-normal winter temperatures reduce the need for gas-fired electricity to heat homes, weighing on demand for natural gas. The heating season from November through March is the peak demand period for U.S. gas consumption.
Natural gas prices ended lower Thursday, after a report from the U.S. Energy Information Administration showed natural gas supplies rose unexpectedly last week.
The U.S. EIA said in its weekly report that natural gas storage in the U.S. in the week ended December 7 rose by 2 billion cubic feet, compared to expectations for a decline of 4 billion cubic feet.
Inventories fell by 79 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a decline of 113 billion cubic feet.
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