NEW YORK: US natural gas futures gained about 2% on Monday on expectations that recent declines in US output will keep the amount of gas that utilities can inject into storage lower than usual in coming weeks.
The rise came despite a 5% drop in global crude prices earlier in the day and forecasts for milder weather and less demand in the United States over the next two weeks than previously expected. US front-month gas futures rose 13.5 cents, or 2.1%, to settle at $6.669 per million British thermal units (mmBtu). On Friday, the contract closed at its lowest since April 8.
With prices falling about 10% last week, US gas speculators cut their net long futures and options positions on the New York Mercantile and Intercontinental Exchanges for the first time in five weeks, according to the US Commodity Futures Trading Commission’s Commitments of Traders report.
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