Investing.com – Natural gas futures started the week off in negative territory on Monday, after updated weather forecasting models showed that temperatures won’t be as cold as previously expected through both the upcoming six- to 10-day and eight- to 14-day periods.
Front-month slumped 4.9 cents, or around 1.7%, to $2.796 per million British thermal units (btu) by 9:20AM ET (1420GMT). It fell to around a one-month low of $2.787 earlier in the session.
The commodity plunged about 19% last week, after weather forecasts showed that temperatures won’t be as cold as previously expected.
Bearish speculators are betting that the mild weather will reduce winter demand for the heating fuel. The heating season from November through March is the peak demand period for U.S. gas consumption.
Meanwhile, market participants looked ahead to this week’s due on Thursday, which is expected to show a draw in a range between 107 and 122 billion cubic feet (bcf) in the week ended Feb. 2.
That compares with a decline of 99 bcf in the preceding week, a fall of 152 bcf a year earlier and a five-year average drop of 151 bcf.
Total natural gas in storage currently stands at 2.197 trillion cubic feet (tcf), according to the U.S. Energy Information Administration.
That figure is 526 bcf, or around 19.3%, lower than levels at this time a year ago and 425 bcf, or roughly 16.2%, below the five-year average for this time of year.
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Source: Investing.com
