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US Natural Gas Futures Sink to Four-Month Low on Warm Forecast

Julian Hast
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US natural gas futures plunged to a four-month low as warmer weather forecasts reduced heating demand, extending losses through February 2026. Traders attributed the decline to diminishing chances of late-winter cold snaps, with analysts noting seasonal heating demand is nearing its end. The drop reflects broader market expectations of lower consumption, as milder temperatures reduce reliance on gas for residential and commercial heating. Darrell Fletcher of Bannockburn Capital Markets warned time is running out for cold weather to boost demand, reinforcing bearish market sentiment. Prices fell despite stable supply levels, highlighting weather as the dominant driver of short-term gas futures amid weak late-winter demand.
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Pipelines at an underground natural gas storage facility in Santa Clarita, California.US natural gas futures closed down, ending at a fresh four-month low, as traders weighed warming outlooks stretching through the end of the month, decreasing demand for the heating fuel.“We are simply running out of time for a last winter cold shot,” said Darrell Fletcher, managing director of commodities at Bannockburn Capital Markets.

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Source: Bloomberg Markets

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