Natural gas futures plunged on Monday as traders digested weaker liquified natural gas (LNG) volumes, potential demand destruction from a new tropical storm and forecasts for milder temperatures in the Midwest.

Evening markets

The October Nymex contract settled at $1.835/MMBtu, down 21.3 cents day/day. It marked the first time since early August that the prompt month closed below $2.000. Futures had rallied last month and reached a high amid the coronavirus of $2.743 on Aug. 28, despite festering supply/demand imbalance concerns imposed by the pandemic.

November advanced 7.7 cents to $2.710, however, as markets expect demand conditions to improve later in the fall.

Spot gas prices declined as overall weather patterns diminished cooling demand. NGI’s Spot Gas National Avg. declined 3.0...