U.S. natural gas futures witnessed a drop following a weekend weather update that predicted milder conditions in early February.
Last week, a severe Arctic blast swept across large portions of the U.S., an event that is likely to be reflected in a bullish inventory report this week. The cold snap is expected to result in substantial withdrawal, causing the surplus over the 5-year average to shift to a deficit.
The Nymex front month, a futures contract for natural gas, has seen a decrease of 6.5%, now valued at $3.766 per mmBtu.
The decline in futures prices comes after the weekend's weather forecast took some of the chill out of early February projections.
