Natural Gas futures sank by more than 1 per cent in the domestic market on Friday as investors and speculators cut risky bets in the energy commodity as forecasts for cooler weather in the US threatened to cut demand for the fuel which is used to fire up power plants as cooling need arises at offices and homes.
Latest weather forecasting models called for cooler weather across most parts of the Great Lakes, Northeast and Midwest-regions in the coming days.
About 49 per cent of US households use natural gas for cooling purposes.
Meanwhile, supplies remain more than adequate with total storage levels 18.3 per cent higher than same time last year and 4 per cent above the five-year average for the period.
At the MCX, Natural Gas futures for September 2015 contract closed at Rs per 178.40 per mmBtu, down by 1.38 per cent after opening at Rs 180.40, against the previous closing price of Rs 180.90. It touched the intra-day low of Rs 177.90 till the closing.