Natural gas futures plunged 6.7% to $3.111 per MMBtu on Monday as market sentiment turned sharply bearish due to a lack of meaningful early-summer demand. Weather models continued to forecast below-normal cooling degree days (CDDs) through early June, limiting any support from heat-driven consumption. Heating demand remains slightly above average, but this late in the season, it holds minimal impact on pricing.
Production levels are steady, and broader demand sentiment is being further undermined by concerns over renewed U.S. trade tariffs, which could pressure industrial gas use. Without a catalyst from either side of the balance sheet, the market remains vulnerable to further downside.
Technically, natural gas has broken below key support at $3.35, and now trades well below its 50-day SMA of $3.662. The current chart setup points to additional losses, with the next psychological support level sitting near $3.00. A daily close below this threshold could trigger another wave of selling.
Outlook: Bearish, driven by weak fundamentals, soft technical structure, and lack of seasonal demand support.
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