US natural gas futures drop 5% pre-market ahead of contract expiration
The front-month contract is set to expire as futures give back part of Thursday's sharp gain
Published
US natural gas futures fell 5% in pre-market trading on Friday, as the front-month contract heads toward expiration.
The drop follows a volatile week for the contract. On Thursday, natural gas futures jumped more than 6% as oil extended its rise, before adding as much as 5% later in the session. That rise followed a jump in physical prices and short covering ahead of Thursday's storage report, according to Natural Gas Intelligence.
Swings around contract expiration are typical, and this pattern does not signal a shift in the fundamental supply or demand picture. The 5% pre-market decline reflects near-term positioning tied to the roll rather than a fresh bearish catalyst, leaving the broader demand and supply outlook unchanged for anyone holding a position in the contract.