Natural Gas Futures Drop on Weaker Weather Demand and Soft Spot Prices

• Bearish weather patterns and increased production weighed on futures
• Comfortable temperatures spread across much of the nation’s southern half
• Liquefied natural gas volumes held strong

Despite robust export demand, bearish weather patterns and increased production weighed down natural gas futures on Monday.

The December Nymex contract dropped 29.8 cents day/day and settled at $2.697/MMBtu to start the trading week. January fell 25.8 cents to $2.864.

NGI’s Spot Gas National Avg. rose 3.0 cents to $2.630, as demand in the Northeast offset comfortable temperatures that spread across much of the nation’s southern half.

Looking further out, weather data trended bearish over the weekend. The European model lost seven heating degree days (HDD) and the domestic forecast...