NEW YORK: US natural gas futures dropped more than 9% to a two-month low on Wednesday on forecasts for warmer weather over the next two weeks than previously expected that could result in lower heating demand.

On its last day as the front-month, gas futures slipped 49.2 cents, or 9.3%, to $4.790 per million British thermal units (mmBtu) by 09:37 a.m. EST (1437 GMT) after hitting its lowest level since Oct. 24 at $4.780 earlier in the session. The contract lost 23% last week.

“The forecasts are that the weather is going to warm up and then maybe stay warm for (a) period of time so the weakness in prices is a reaction to the weather forecast that above normal temperatures (will be) over most of the country,” said Thomas Saal, senior vice president for energy at StoneX Financial Inc.

Data provider Refinitiv estimated 327 heating degree days (HDDs) over the next two weeks in the Lower 48 US states, down from 352 HDDs estimated on Tuesday.