NEW YORK: US natural gas futures gained more than 6% on Monday ahead of the expiration of the March contract following a sharp retreat in the last two sessions, with further support coming from slightly warmer weather forecasts.
Front-month gas futures were up 9.5 cents, or 5.9%, to settle at $1.70 per million British thermal units.
The March contract is set to expire on Tuesday. The market seems to have found a bottom, with the “negative news experienced most of the winter, with low demand, (having) run its course at this point,” said Gary Cunningham, director of market research at Tradition Energy.
“Now we’re looking forward to where do we go from here and that’s where you’re starting to see those CapEx cuts have a bigger impact and a return to more normal weather patterns for the summer.”
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