Temperature warming dampens outlook! U.S. natural gas futures plunge.

Natural gas futures prices in the United States have fallen sharply, completely erasing the gains from last Friday, as short-term weather forecasts indicate temperatures will be milder. Data shows that as of the time of writing, US natural gas futures for the near month have dropped more than 15%, to $3.699 per million British thermal units. Prior to the record cold spell, the futures had risen by 11% last Friday. Despite the severe cold weather sweeping through the southern United States, prompting local power-saving measures, the overall temperatures are expected to be milder before mid-month. According to data from the National Oceanic and Atmospheric Administration (NOAA), temperatures in large areas of the US are expected to be above normal levels. This is likely to dampen demand for natural gas, which is mainly used for heating and power generation. Over the past few weeks, US natural gas futures prices have been experiencing significant fluctuations. The February contract soared to a three-year high before expiring last Wednesday, driven primarily by a winter storm disrupting production and increasing heating demand. The March contract also rose again last Friday as traders digested conflicting weather forecasts and a bullish government inventory report.