Temperatures

February natural gas is expected to open 17 cents higher Friday morning at $4.90 as traders go back to the drawing board and refigure season-ending inventories now expected to be significantly lower than earlier estimates. Overnight oil markets weakened.

Demand for natural gas isn’t likely to spike unusually higher over the next three months, based on a forecast from Weather Services International (WSI) that calls for temperatures to average warmer than normal across much of the United States, with the exception of parts of the North Central and Northeast regions.

The northern United States and southern Canada will be dominated by colder-than-normal temperatures over the next three months, while above-normal temperatures are expected across the U.S. South, according to forecasters at Weather Services International (WSI). The heavily populated Boston-to-Washington, DC, corridor may avoid much of the winter’s coldest weather, WSI said.

Winter 2013-2014 is likely to bring above-average temperatures to most of the South and portions of New England, with below-average temperatures expected across the Northern Plains, the National Oceanic and Atmospheric Administration (NOAA) said in its annual Winter Outlook, which was released Thursday.

Physical natural gas prices for weekend and Monday delivery added a penny on average Friday. Prices generally moved within a nickel of unchanged at most points, but Northeast and Eastern seaboard locations found themselves mostly in the loss column.

Temperatures across the United States over the next three months will be a decidedly mixed bag, with early cold in central and eastern areas expected to fade in the first days of 2014, according to forecasters at Weather Services International (WSI).

Government agency said it also expects Americans to spend more this winter to heat their homes with natural gas.

Natural gas will remain the most affordable heating option for most residential customers this winter, with mild temperatures expected to keep any increase in gas bills at no more than 5-10% compared with last winter, according to the American Gas Association (AGA).

Thursday deliveries of physical natural gas overall fell another 8 cents on average Wednesday as soft power prices and a lack of not only supportive weather, but also a non-existent Atlantic tropical environment, continued to pressure the market. October natural gas options expired Wednesday and at the close of futures trading October had risen 0.1 cent to $3.493 and November had eased 1.3 cents to $3.546. November crude oil slid 47 cents to $102.66/bbl.