2023-04-03 17:41:18 ET
U.S. natural gas futures fell more than 5% Monday on forecasts for milder weather and less heating demand than previously expected.
Weather forecasts in the Lower 48 states point to continuing warmer than normal temperatures through April 18, except for a few days during April 6-8 that could be colder than normal.
The decline in U.S. gas futures also came as U.S. producers of liquefied natural gas ramped up total shipments last month to an all-time record of 7.73M metric tons, Reuters reported citing Refinitiv Eikon data, as Freeport LNG, the second largest U.S. LNG exporter, returned to full power during the past week.
Front-month Nymex natural gas ( NG1:COM ) for May delivery settled -5.3% to $2.097/MMBtu, continuing the volatile trading seen in recent weeks with the front-month contract gaining or losing more than 5% in 12 of the past 22 trading days.
ETFs: ( NYSEARCA: UNG ), ( UGAZF ), ( BOIL ), ( KOLD ), ( UNL ), ( FCG )
While shares of oil producers rallied strongly as crude prices surged, results for gas-focused stocks were mixed: EQT Corp. ( EQT ) -0.3% , Southwestern Energy ( SWN ) +0.2% , Range Resources ( RRC ) +1.2% , Coterra Energy ( CTRA ) +2.3% , Antero Resources ( AR ) +2.5% .
The drop in gas prices combined with the big jump in crude futures has raised oil's premium over gas to its highest since May 2012 for an oil-to-gas ratio to 38-to-1 on Monday.
Analysts at energy consultant Ritterbusch and Associates said recently they "still see significant price support further down the curve with Europe likely to be a stronger player later in the summer ."
For further details see:
U.S. natural gas slides again; oil-to-gas price ratio highest in nearly 11 years