In early Asian trading, the front-month contract dropped as much as 17% to $3.620 per million British thermal units. Ahead of record-breaking cold weather on Friday, the contract had increased by 11%.
Although the southern United States is experiencing extremely cold weather, which has prompted attempts to conserve electricity, the forecast for the middle of the month is milder.
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The National Oceanic and Atmospheric Administration predicts that temperatures in several parts of the nation will be higher than usual. The demand for natural gas, used for power generation and heating, is likely to decline as a result.
Over the past few weeks, US gas futures have fluctuated dramatically. A winter storm that delayed supply and increased demand for heating caused the February futures contract to soar to a three-year high before expiring last Wednesday. As traders processed conflicting weather forecasts and a positive government storage report, the March contract surged further on Friday.
(Edited by : Juviraj Anchil)
