US natural gas futures extended their decline for a second consecutive day as weather forecasts shifted toward milder conditions across key consumption regions. The warmer outlook signals reduced demand for heating fuel and power generation, pressuring prices lower. Market participants are recalibrating expectations as the seasonal demand peak appears to be moderating.

Falling oil prices added to the downward pressure on natural gas markets. Lower crude values triggered financial outflows from energy futures baskets, creating a broader sell-off across commodities. This correlation between oil and natural gas has intensified as investors reassess energy sector allocations amid changing macroeconomic signals.

The combination of milder weather forecasts and oil price weakness has created a perfect storm for natural gas bears. Traders are watching for any signs of demand recovery, but current indicators suggest continued pressure on prices. The market remains sensitive to both weather pattern changes and broader energy market dynamics.