09.02.202603:09:06UTC+00US Natgas Prices Extend Fall to Over 3-Week Low

On Monday, U.S. natural gas futures dropped by 6.2% to approximately $3.20 per MMBtu, marking their lowest point in over three weeks. This decline extends the losses experienced in the previous session, as markets assess the impact of warmer weather forecasts across significant parts of the country. Predictions indicate above-average temperatures across extensive regions of the U.S., with the central and southern areas expected to experience unusually warm conditions in the upcoming days, gradually extending eastward. These milder temperatures are anticipated to lower the demand for heating and power generation, thereby exerting downward pressure on gas prices. Additionally, market sentiment has been dampened by recent Baker Hughes data, highlighting a significant increase in drilling activities within the Haynesville Shale, a key gas-producing region in northwest Louisiana and East Texas. The rise in active rigs raises concerns regarding future supply levels. In early Asian trading, futures for March delivery declined by as much as 6.5% to $3.20 per million British thermal units.