Natural Gas Futures Plummet to Lowest Level Since May 8 Amid Reduced Tensions

Natural gas futures prices fell to their lowest level since May 8 on Monday, dropping to $2.74 per million British thermal units (MMBtu) and down 4.89% from Friday's settle near $2.88.

The decline comes as the United States paused an almost two-week air campaign against Iran without a formal announcement, leading to reduced tensions in the region and a decrease in the premium for US natural gas due to the potential disruption of Qatari LNG exports.

Storage levels remain high at 3,056 Bcf, or 183 Bcf above the five-year average, making it difficult for prices to rebound even with hot weather forecasts.

The market is now waiting for Thursday's Energy Information Administration (EIA) report, which will provide more insight into storage levels and potentially influence future price movements.