NYMEX April gas futures settle 6.2 cents lower on market correction

The NYMEX April natural gas futures contract settled 6.2 cents lower at $3.865/MMBtu Monday as an overbought market saw a correction after last week's rally.

The contract kept "popping up to $4[/MMBtu] and moving back" in the last several days, said IAF Advisors Director Kyle Cooper.

"Demand is scheduled to drop pretty significantly over the next week," Cooper added.

The last several weeks were "the most bullish period for the gas market in terms of temperature profile" this winter, said Cooper, adding: "A lot of net length got accumulated, and there were too many buyers."

Earlier in Monday's session, April nudged higher on the back of forecasts for below-average temperatures in the eastern part of the US for the next two weeks.

April traded between $3.860/MMBtu and $3.996/MMBtu on Monday.