Natural Gas Plunges Nearly 4% on weather outlook

Natural Gas Updates - Natural Gas futures plummeted by almost 4 per cent in the domestic market on Tuesday as investors and speculators exited positions in the energy commodity as forecasts for a return of milder weather across parts of the US threatened to curb the demand for the heating fuel in the world’s biggest economy. Updated weather forecasting models called for above-normal temperatures in the US Midwest and Northeast later in the month, crimping the need for gas-fired heating at offices and homes. About 49 per cent of US households use natural gas for heating purposes. November to March is the peak US gas heating season. At the MCX, Natural Gas futures for January 2016 contract closed at Rs 153.4 per mmBtu, down by 3.7 per cent, after opening at Rs 158.7, against the previous closing price of Rs 159.3.It touched an intra-day low of Rs 152.3.