16.02.202603:58:15UTC+00US Natgas Prices Fall to 4-Month Low

US natural gas futures fell to about $3.02 per MMBtu, erasing the prior session’s gains and hitting a four-month low, as warmer weather forecasts dampened expectations for heating demand. The NOAA projects above-average temperatures across central and southern regions of the country over the next two weeks.

The March contract had surged to a three-year high last month after a winter storm boosted consumption and briefly disrupted supply. The sharp move on Monday was also exacerbated by thin holiday trading conditions for President’s Day, which tend to magnify price swings. Normal trading and settlements will resume on Tuesday, with investors closely monitoring updated weather models and storage data for clues on near-term price direction.

Despite the latest pullback, underlying fundamentals remain supportive. US working gas inventories are about 130 bcf below the five-year average, and LNG exports are holding near record highs, reinforcing structural demand for US natural gas.