-- US natural gas futures extended losses for a fifth straight session in after-hours trading on Tuesday, pressured by forecasts for persistently above-normal temperatures.
The front-month Henry Hub contract and the continuous benchmark were down 1.29% at $2.593 per million British thermal units.
European gas prices also dropped sharply on Tuesday, sliding more than 8% amid weak demand signals and expectations that disruptions tied to the Strait of Hormuz could ease.
In the US, weather remained the dominant driver. Near-term forecasts showing widespread mild conditions across much of the country kept demand expectations subdued.
"The primary domestic driver remains the bearish near-term temperature outlook. With mild weather forecast through the end of April, the market is unconcerned about an early wave of cooling demand, while any substantial heating load is firmly in the rearview mirror," The Energy Buyers Guide said. "Until the market observes a change in weather or sees a tangible impact from tightening underlying supply, the path of least resistance will likely remain sideways to lower,"
NatGasWeather.com said Tuesday that most of the US will see warmer-than-normal temperatures, including the South and East Coast, while cooler pockets persist in parts of the West and far northern states. Overall demand is expected to remain low through Saturday, then rise to moderate levels Sunday through Tuesday.
Weak consumption is expected to contribute to inventory builds as production stays elevated. Storage surpluses are projected to widen toward roughly 150 Bcf after the upcoming EIA reports, according to market commentary cited by the Wall Street Journal.
Separately, Barchart, citing BNEF data, reported US gas demand at 67.0 Bcf/d on Tuesday, down 1.4% year over year. Production stood at 110.8 Bcf/d, up 2.2% annually, while net flows to LNG export terminals rose to 19.7 Bcf/d, up 3.7% on the week.