CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

US natural gas futures continued to stumble amid warmer winter

By Daniel Tyson

19:26, 6 December 2021

A stove burning natural gas
Analysts are mixed on natural gas futures - Photo: Shutterstock

Natural gas futures continued to stumble on Monday, staggering into the $3 territory amid a mild winter forecast in the US.

At 9 am EDT (UTC-5), the price for January delivery was $3.75 MMBtu. By 1:30 pm, that price was $3.68, down nearly 11%.

Bespoke Weather Service reported Monday morning this December is “solidly on track” to be the second warmest on record, only behind 2015. “We continue to be faced with both a Pacific and Atlantic side of the pattern that promotes very warm weather in the eastern two-thirds of the nation.”

The American weather service said over the next couple of weeks mid conditions will continue. But around 20 December, colder temperatures may appear.

A projection of a mild winter sent futures to their lowest price since July. A warm winter means less natural gas is used to heat homes.

Mixed reaction from Street

Natural gas companies are seeing a mixed reaction from Wall Street after prices enter the upper $3 mark. CNX Resources and Comstock Resources saw slight increases in stock prices, up 3% and 2%, respectively.


2,062.16 Price
+1.210% 1D Chg, %
Long position overnight fee -0.0195%
Short position overnight fee 0.0113%
Overnight fee time 22:00 (UTC)
Spread 0.30

Natural Gas

2.82 Price
+0.140% 1D Chg, %
Long position overnight fee 0.0443%
Short position overnight fee -0.0662%
Overnight fee time 22:00 (UTC)
Spread 0.0050


25.42 Price
+0.460% 1D Chg, %
Long position overnight fee -0.0200%
Short position overnight fee 0.0118%
Overnight fee time 22:00 (UTC)
Spread 0.020

Oil - Brent

81.21 Price
+0.630% 1D Chg, %
Long position overnight fee 0.0008%
Short position overnight fee -0.0227%
Overnight fee time 22:00 (UTC)
Spread 0.032

While Chesapeake Energy and Range Resources witness small drops, 0.63% and 0.60% during trading Monday afternoon.

Analysts said the markets aren’t looking overly bleak for producers as the unrelenting global demand for US liquefied natural gas is strong. Pointing to historical data, analysts said natural gas prices are up significantly year to date and up 180% from a 25-year-low.

What is your sentiment on Natural Gas?

Vote to see Traders sentiment!

January contract

The January natural gas contract shattered last week, shedding $1.345/MMBtu (-24.6%), the worst weekly loss in more than ten years, EBW Analytics reported.

While shorts may take profits at any point, it is entirely possible that the January natural gas contract could plummet $2.00/MMBtu from $5.562/MMBtu, moving towards $3.56/MMBtu within the space of two weeks, according to Phil Flynn, senior analyst with Price Future Group.

Read more: US mid-day: Dow up big after Friday sell-off

Related topics

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading