NEW YORK—Natural-gas futures broke below $2.75 a million British thermal units, continuing a massive selloff from earlier in the day that has shaved 6.8% off prices in one trading session.
Natural gas for February delivery fell as low as $2.741, down 20 cents, or 6.8% from Tuesday's settlement. Prices were getting close to the 28-month low of $2.728/MMBtu set Sept. 4, 2009. If the futures prices continue to drop, the next-nearest low would be $2.508 set Sept. 3, 2009.
Gas futures have been in a long decline as the market has been plagued by oversupply, but sentiment turned sharply against the futures after the latest weather forecast revisions reflected warmer-than-normal temperatures through late January.
More than half of U.S. homes are heated by natural gas, and it is a component for power plants in electricity generation, which is also used to heat homes. But mild temperatures during what should be peak demand season this fall and winter have depressed demand at the same time that robust production from U.S. shale fields has created record supplies.