Natural Gas Prices Plummet Amidst Bearish Weather and Disappointing COP28 Agreement

U.S. natural gas prices have dropped over 10% due to high inventories and forecasts of warmer-than-usual weather, indicating light demand for space heating. The benchmark front-month futures at the Henry Hub are now at their lowest level since the start of summer. The United States is entering the heating season with the highest natural gas inventories since 2020, contributing to the bearish market sentiment. Rising production and a milder start to the heating season are further pressuring prices downward.