US natural gas futures rose on Monday. For May delivery on the New York Mercantile Exchange (NYMEX), the front-month gas futures rose 7 cents (4.0 percent) to $1.803 per million British thermal units.
Demand from industrial and commercial companies has been reduced due to milder weather and steps to slow the spread of the coronavirus as factories run at lower capacities and offices close.
Gas was traded near its lowest in years even before the virus started to slash global energy demand and economic growth. The front-month gas futures settled at its lowest since August 1995 during the first week of this month.
From a record 84.97 bcfd last year, the coronavirus projected by the US Energy Information Administration (EIA) would cut US gas consumption to 83.79 bcfd this year and 81.24 bcfd next year.
For the balance of 2020 and calendar 2021, gas futures were trading much higher when compared to the front month on expectations demand in coming months will rise.
