NEW YORK: US natural gas futures rebounded after crashing to their lowest levels in nearly four years ahead of the March contract expiry on Tuesday, as excess inventories and near-record levels of output flooded the market overwhelmed by milder temperatures. Front-month gas futures for March delivery was up around 1% at $1.68 per million British thermal units after dropping to as low as $1.511 earlier in the session, its weakest level since June 2020.
Prices were pressured, as “the market fundamentally is coming out of the winter at much higher storage levels than what we had anticipated. It’s been a very warm November through March, so weather related natural gas demand is lower, which allowed for larger storage,” said Robert DiDona of Energy Ventures Analysis.
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