Natural Gas Futures Plummet Amid Fading Power Demand

Natural gas futures slid on Wednesday as fading power demand and milder fall temperatures pressured the market.

The price drop comes despite strong LNG feedgas and expectations for a lean storage injection Thursday.

The retreat in natural gas prices is due to lower power burn, which has dropped sharply. This reduction in demand, combined with the approaching milder weather, has put downward pressure on the market.

The NYMEX futures contract price fell as the market anticipated a lean storage build. LNG feedgas remains strong, but it was not enough to offset the decline in power burn and expected temperature changes.