NEW YORK: US natural gas futures fell more than 5percent on Monday and hit a one-month low, as profit taking kicked in, while higher output also added pressure.
Front-month gas futures for May delivery on the New York Mercantile Exchange fell 15.1 cents, or 5percent, to USD2.87 per million British thermal units after touching its lowest level since February 27 earlier in the session. On Friday, prices scaled its highest level since March 23. Average gas output in the US Lower 48 states stood at 109.7 billion cubic feet per day (bcfd) so far in March, up from 109.2 bcfd in February, according to data from financial firm LSEG.
“The market’s looking forward into the shoulder month period, which is a low demand period for April and parts of May,” said Thomas Saal, senior vice president for energy trading at StoneX Financial, adding that the market will shift its focus to storage injections.