-- US natural gas futures continued to decline in after-hours trade on Monday as robust supply collides with weak shoulder-season demand.
The front-month Henry Hub contract and the continuous futures both fell 0.79% to $2.627 per million British thermal units.
Prices rose early Monday, tracking crude oil higher on renewed concerns about energy shipments after US President Donald Trump's order to block the Strait of Hormuz after weekend peace talks with Iran collapsed, according to Bloomberg.
By midday, the move reversed as fundamentals took over again. Prices slipped back toward-and then below-the 17-month low set last week, as weak demand in the seasonal shoulder period outweighed geopolitical fears.
Gelber & Associates explained on Monday: "The biggest demand shifts are a jump in power burn to 33.5 Bcf/d and a sharp fade in ResComm to 12 Bcf/d, while on the supply side production is holding high at 110.2 Bcf/d and Canadian imports have eased to 5 Bcf/d. That leaves total supply at 115.2 Bcf/d against total demand of 104 Bcf/d, with the net balance widening to 11.2 Bcf/d."
Barchart cited data from The Commodity Weather Group, which said above-normal temperatures across the eastern two-thirds of the US are expected to ease back toward seasonal norms starting Apr. 18 and continue through Apr. 27.
On the export side, BNEF said LNG feedgas demand was a strong 19.9 Bcf/d, up 1.5% from the previous week.