US natural gas futures slumped 6.2% to around $3.20 per MMBtu on Monday, extending losses from the previous session and reaching its lowest level in over three weeks, as markets weighed the impact of warmer weather forecasts across broad areas of the country. Above-average temperatures are expected across large swaths of the US, with the central and southern regions experiencing unseasonably warm weather in the coming days, gradually moving eastward. These milder temperatures are likely to suppress demand for heating and power generation, putting downward pressure on gas prices. Market sentiment was further weighed down by recent data from Baker Hughes, which revealed a notable increase in drilling activity in the Haynesville Shale, a major gas-producing region spanning northwest Louisiana and East Texas. The uptick in active rigs raises concerns about future supply. In early Asian trading, futures for March delivery slipped as much as 6.5% to $3.20 per million British thermal units.
