NEW YORK: US natural gas futures fell about 4 percent to a six-month low on Monday on forecasts for milder weather and lower demand over the next two weeks than previously expected.
Front-month gas futures for November delivery on the New York Mercantile Exchange fell 11.4 cents, or 4 percent, to USD2.526 per million British thermal units (mmBtu), putting the contract on track for its lowest close since April 24.
That also kept the front-month in technically oversold territory for a fourth day in a row for the first time since April.
With gas futures down 21 percent over the past seven days, speculators last week boosted their net short futures and options positions on the NYMEX and Intercontinental Exchange to their highest since February 2024, according to the US Commodity Futures Trading Commission’s Commitments of Traders report.
In a sign the market is not too worried about gas supplies this winter, the premium of futures for March over April 2027 fell to a record low of around 6 cents per mmBtu.
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