Natural Gas Plunges on Forecasts Calling for Warmer-than-normal Weather

U.S. natural gas futures gapped down on Monday, extending their sharply decline after having fallen steeply last week. The reason behind this downward rally was due to latest forecasts that called for above-average temperatures most parts of the U.S. for the upcoming weeks.

U.S. natural gas for April delivery dropped around 4% to trade at $2.675 per million British thermal units on the back of concerns over declining demand for heating as weather will turn into warmer-than-normal condition in key regions across the U.S. for the rest of the winter, according to updated weather forecasts.

Prices of the commodity plummeted by 7% in the previous week to the lowest level since November 11, 2016.

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