02.02.202601:41:20UTC+00US NatGas Plunges Amid Warmer Weather Outlook

U.S. natural gas futures experienced a significant decrease of 14.7%, settling at $3.70 per MMBtu on Monday. This decline comes after notable gains from the previous week, influenced by forecasts suggesting milder weather across much of the nation. Although some regions in the southern U.S. continue to experience colder temperatures, the National Oceanic and Atmospheric Administration anticipates that overall temperatures will exceed seasonal averages. This anticipated weather change is likely to reduce the demand for natural gas, which remains a vital resource for both residential heating and electricity production. The market has been marked by considerable volatility in recent weeks, with February futures reaching a three-year peak before their expiration last Wednesday. Meanwhile, the March contract saw another surge last Friday as traders balanced conflicting weather predictions against robust government storage data. Additionally, flows to liquefied natural gas export facilities increased, driven by the anticipated resumption of a liquefaction train at Freeport LNG in Texas.