Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Key Moments

  • U.S. natural gas futures for March delivery fell as much as 6.5% to $3.200 per million British thermal units in early Asian trading.
  • Government forecasts called for above-normal temperatures across central and southern regions later this week, with warmth shifting east afterward.
  • Friday’s 2.5% price drop followed a Baker Hughes report showing a notable rise in drilling activity in the Haynesville shale.

Weather-Driven Demand Outlook Weighs on Prices

U.S. natural gas futures extended their slide for a second consecutive session, pressured by expectations for warmer-than-normal temperatures across broad swaths of the country. The anticipated milder conditions are seen curbing demand for natural gas used in heating and power generation.

Contracts for March delivery declined as much as 6.5% to $3.200 per million British thermal units during early Asian trading. A government forecast indicated that temperatures are set to run above average in the central and southern United States from the end of this week, with the warmer pattern expected to shift toward the eastern part of the country thereafter.

Recent Selling Follows Rebound in Drilling Activity

The latest move lower builds on Friday’s 2.5% loss, which ended a three-session advance. That prior decline came after a weekly update from Baker Hughes showed a substantial increase in drilling in the Haynesville shale, a key production area spanning northwest Louisiana and East Texas. A rising rig count is typically associated with potential future supply growth, a factor that can put downward pressure on nearby contracts.

Contract/MetricDetail
March natural gas futuresDown as much as 6.5% to $3.200 per million British thermal units in early Asian trade
Previous session move (Friday)Price decline of 2.5%, ending a three-day rally
Weather outlookAbove-normal temperatures expected in central and southern U.S. from the end of this week, then shifting east
Drilling activityWeekly Baker Hughes report showed a significant uptick in Haynesville shale rigs

From Weather-Driven Spike to Full Reversal

At the end of last month, U.S. natural gas prices surged to their highest level in more than three years as a cold spell boosted consumption and disrupted some supplies. Since then, futures have given back those gains, with the combination of warmer weather projections and signs of increasing drilling activity pulling the market lower.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Macerich announces $0.17 quarterly dividendMacerich announces $0.17 quarterly dividend Macerich Co (NYSE: MAC), a fully integrated, self-managed, self-administered real estate investment trust, said this week its Board of Directors had authorized a regular quarterly cash dividend of $0.17 per share of common stock.The […]
  • Brent Crude Soars on Supply Shock, Hits 18-Year HighsBrent Crude Soars on Supply Shock, Hits 18-Year Highs Key Moments Physical Brent crude in the North Sea touched $141.37 per barrel, the highest level since 2008. The Strait of Hormuz has remained closed for more than a month, in what the International Energy Agency called the […]
  • Crude oil trading outlook: WTI futures climb after bullish EIA reportCrude oil trading outlook: WTI futures climb after bullish EIA report WTI futures extended gains this session, after the US reported a sizable draw across all oil products last week, boosting supply-demand outlooks for the worlds top oil-consuming economy.WTI futures for November delivery on the New York […]
  • Dell’s PC division bets on new Venue tabletsDell’s PC division bets on new Venue tablets Dell took a big step in unveiling a new family of tablets and new laptops, including a two-in-one Ultrabook. The Dell Venue line of tablets is comprised of four new thin models designed to comply with everyday lifestyle.Dell’s "damn sexy" […]
  • GBP/USD rises to 12-week high on Fed rate peak convictionGBP/USD rises to 12-week high on Fed rate peak conviction The GBP/USD currency pair scaled a fresh 12-week peak on Monday, as market players awaited a host of macro data in the week ahead, including the Federal Reserve's preferred measure of inflation, for further clues on future interest rate […]
  • E-scooter operator TIER acquires bike-sharing firm NextbikeE-scooter operator TIER acquires bike-sharing firm Nextbike Berlin-headquartered e-scooter operator TIER Mobility said earlier this week it had acquired bike-sharing firm Nextbike in an attempt to form the largest provider of shared lightweight vehicles in Europe.The deal, whose financial […]