NEW YORK: US natural gas futures eased about 1% on Monday on forecasts for milder weather and less demand next week than previously expected.
The price decline comes despite a reduction in output, record exports to Mexico and a rise in the amount of gas flowing to US liquefied natural gas (LNG) export plants even though some plants were reduced for maintenance.
Front-month gas futures for November delivery on the New York Mercantile Exchange fell 3.3 cents, or 1.1%, to $2.896 per million British thermal units (mmBtu) at 9:58 a.m. EDT (1358 GMT).
Even though the contract was up about 11% last week, speculators switched their futures and options position on the New York Mercantile and Intercontinental Exchanges from net long to net short for the first time since late August, according to the US Commodity Futures Trading Commission’s Commitments of Traders report.
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