A notable drop in weather-driven demand expectations over the Easter holiday weekend helped send natural gas futures tumbling in early trading Monday. The May Nymex contract was down 7.7 cents to $2.562/MMBtu at around 8:45 a.m. ET.

NGI Morning Natural Gas Price & Markets Coverage

Over the holiday weekend both the European and American weather models showed large losses in degree days, according to EBW Analytics Group analysts. They estimated a decline of 18 Bcf in total projected natural gas demand resulting from the forecast changes.

“This large loss has sent natural gas prices down sharply in early-morning trading,” the EBW analysts noted. “The May contract is already testing support near the next major support level at $2.55/MMBtu. While it is possible support will hold this morning, further losses may occur later...