NEW YORK: US natural gas futures broke an eight-day losing streak, rising about 1% on Monday, as forecasts for cooler weather and higher heating demand next week and near-record liquefied natural gas (LNG) exports prompted short sellers to take profits.
That small price increase came despite record output, ample storage and low spot prices, which has been weighing on prices for a couple of weeks.
Front-month gas futures for November delivery on the New York Mercantile Exchange rose 2.7 cents, or 0.9%, to settle at $2.926 per million British thermal units (mmBtu). On Friday, the contract closed at its lowest since Oct. 2.
After eight days of price declines, traders noted that short sellers started to take profits before the front-month became technically for the first time since March.
One bearish factor that has weighed on the futures market for most of this year has been lower spot or next-day prices at the Henry Hub benchmark in Louisiana.
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