US natural gas futures fell more than five per cent on Monday and hit a one-month low, as profit taking kicked in, while higher output also added pressure.
Front-month gas futures for May delivery on the New York Mercantile Exchange fell 15.1 cents, or five per cent, to $2.87 per million British thermal units after touching its lowest level since February 27 earlier in the session.
On Friday, prices scaled its highest level since March 23.
Average gas output in the US Lower 48 states stood at 109.7 billion cubic feet per day (bcfd) so far in March, up from 109.2 bcfd in February, according to data from financial firm LSEG.
"The market's looking forward into the shoulder month period, which is a low demand period for April and parts of May," said Thomas Saal, senior vice president for energy trading at StoneX Financial, adding that the market will shift its focus to storage injections.
"Prices could continue to trade a little bit below $3," he added.
LSEG projected average gas demand in the Lower 48 states, including exports, at 108.6 bcfd this week and 110.3 bcfd next week.
Analysts at Ritterbusch and Associates said they, "believe that a significant decline in production or any unexpected supply disruption could prompt an outsized price response. And although export activity has ramped up in recent days, supportive impact has been largely offset by the increased output."
Iran described US proposals to end a month of war in the Middle East as "unrealistic, illogical and excessive" and unleashed more missiles on Israel.
Meanwhile, US President Donald Trump issued another warning to Iran to open the Strait of Hormuz, a waterway used for shipping a fifth of global oil and liquefied natural gas supplies, or risk US attacks on its energy infrastructure.
(Reporting by Sarah Qureshi in Bengaluru; Editing by Andrea Ricci and Nick Zieminski)