Natural Gas Futures Hit Two-month Trough As Mild Weather Hurts Demand
U.S. natural gas futures extended their downbeat moves on Monday, with prices weighed down by weather forecast that show milder weather over the next couple of weeks.
Front-month gas futures for November delivery on the New York Mercantile Exchange tumbled more than 0.7 percent to trade at $2.843 per million British thermal units in North American trading session, heading to close lower for the sixth trading session in the last seven days. The futures prices plunged to the lowest level since August 09, 2017 on Monday after having slipped by nearly 5% last week.
Weather forecasting models predicted mild temperatures for the eastern part of the U.S. due to the fact that high pressure returns. Meanwhile, the West Coast will be mild to warm and the southern U.S will be very warm to hot. According to market analysts, under the impact of mild weather that tends to hurt early-winter demand for the heating fuel, U.S. gas consumption would slip to 71.3 billion cubic feet per day (bcfd) this week and the next from 74.3 bcfd last week.
Sell Stop at 2.8300, Take profit at 2.8000, Stop loss at 2.8450