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Bloomberg
US natural gas futures extended declines below $3 amid mild winter weather that’s helped spark the worst selloff among country’s commodities.
Gas for February delivery traded as low as $2.857 per million British thermal units on the New York Mercantile Exchange. Prices are at lowest levels since May 2021 after dipping below $3.
Doomsday fears that suppliers wouldn’t be able to meet wintertime demand have been erased by a confluence of factors, leading gas prices to plunge after hitting a 14-year high of $10.03 in August.
Natural gas had been one of the most bullish commodity stories in recent years. Prices hit the August high amid a global supply crunch that was aggravated last year by Russia’s invasion of Ukraine.
But hedge funds have turned the most bearish on US gas prices in almost three years, according to data released by the US Commodity Futures Trading Commission.