NEW YORK: US natural gas futures dropped about 5% on Tuesday as drillers keep pulling record amounts of gas out of the ground while seasonally warmer weather cuts heating demand and the amount of gas flowing to liquefied natural gas (LNG) export plants declines as units shut for spring maintenance.
Energy traders said gas futures were also pressured by a roughly 5% drop in prices of oil, gasoline and diesel futures on concerns about the economy, as US politicians discuss ways to avoid a debt default and investors prepare for another US interest rate hike this week. Front-month gas futures for June delivery on the New York Mercantile Exchange fell 10.4 cents, or 4.5%, to settle at $2.214 per million British thermal units (mmBtu).
Data provider Refinitiv said average gas output in the US Lower 48 states rose to 101.7 billion cubic feet per day (bcfd) so far in May, up from a record 101.4 bcfd in April.
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