U.S. NatGas Futures Test 1995 Lows

U.S. natural gas futures on Friday sank to within a penny of a 1995 low as drillers continue to pull near record amounts of gas out of the ground despite forecasts for warm weather and light heating demand and with stockpiles at record high levels.

Front-month gas futures on the New York Mercantile Exchange were down 2.3 cents, or 1.4 percent, to $1.616 per million British thermal units at 7:27 a.m. EST (227GMT), the lowest level since August 1998.

If the contract falls below $1.61, it would drop to the lowest level since September 1995.

Futures have been on a downward spiral for months. So far this year, the front-month has collapsed over 30 percent. Friday's decline puts the front-month on track for a sixth down week in a row, the longest losing streak since January 2015.

Reporting by Scott DiSavino