After another run towards $4.200/MMBtu last week, natural gas futures took a nosedive on Monday as long-range weather forecasts continued to cool while liquefied natural gas (LNG) demand remained well off recent highs. The September Nymex gas futures contract settled at $4.060, off 8.0 cents from Friday’s close. October dropped 7.9 cents to $4.075.
As it was last week, the 15-day weather outlook was front and center during Monday’s gas trading session. The last several model runs showed the upcoming heatwave fading by the third week of August. The most recent forecasts cooled even further. Bespoke Weather Services said while this week is still expected to be hot, the strongest demand would be in the back half of the period. In addition, the weather pattern for early next week shifted cooler.
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