U.S. natural gas futuresThe gas price plunged to more than 10% Monday. It fell to its lowest point since August, based on predictions for higher-than-expected winter temperatures. This is in addition to the more than 24% natural gas loss last week, which was its worst week since February 2014.

Contracts for January delivery were traded around 10:30 a.m. Wall Street at $3.68 for one million British thermal unit (MMBtu), a drop of 10.9%.

John Kilduff of Again Capital stated that bearish weather forecasts are the key.

On a weekly basis, we have sporadic periods of relative heat. “That is keeping any significant heating demand at bay,” said he. The storage situation has improved over the last few weeks with natural gas inventories at normal levels relative to the average five-year period. This is a huge improvement on the large deficit that existed into the early fall.

As inventory was tight and concerns about an EU shortage boosted U.S. gas prices, natural gas saw a significant increase for the majority of the year. In October, the U.S. reached its highest level in seven years. These numbers led to speculation that oil producers might switch to natural gas.

Natural gas reached a seven-year peak of $6.466 per million BTU on October 6. The declines have been quick and this week’s four-day drop of $6.466 per MMBtu between Monday and Thursday has been the longest in the past quarter century, according data from Bespoke. These losses follow November’s decline of 15.8%, which was the most severe month in a single year.

Campbell Faulkner senior vice president of OTC Global Holdings stated, “A 10% decline isn’t surprising given that peak heating season still hasn’t started yet.” “The natural gas complex is likely to experience bearish pressures, until weather predictions (and weather) start turning colder.”

Natural gas was up 47% for 2016, which is the fastest year since 2016.

Morgan Stanley stated that although the risks are “skew negatively” going into 2019, there are positive drivers such as additional LNG projects, which should boost demand, and tightness in coal markets, which will encourage utilities to switch to gas.

Forecasts for 2022 by the firm are at $3.75/MMBtu.