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U.S. natural gas futures dropped steeply on Monday, falling to the lowest level in almost five months as updated weather forecasts signaled lower demand for the fuel.
U.S. natural gas for September delivery tumbled by nearly 4 percent to trade at $2.819 per million British thermal units in North American trading session. The price plunged to the lowest since early March 2017.
According to market source, meteorologists forecast temperatures during the month of August to be near normal after a warmer-than-average June and July near-normal temperatures, which would turn down cooling demand over the next two weeks. Nearly 50% of all U.S. households use gas for cooling.
Analysts expect this week’s storage data scheduled to be published on Thursday will point to a build in a range between 17 and 27 billion cubic feet in the week ended July 28.
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