Commodities
Shoulder Season Slams Natural Gas Prices by Nearly $3
Natural gas futures finished nearly unchanged on Friday but posted a sizable weekly loss. The decline in prices was driven by rapidly fading power sector demand and the approaching shoulder season, which outweighed strong LNG feedgas and lower production.
The power burn plunged week-over-week, contributing to the decrease in natural gas prices. However, LNG volumes helped offset some of this erosion in demand. Additionally, a storage surprise that got a boost from windy conditions also played a role in the market's dynamics.
At a glance, the key points are: power burn plummeted week-over-week, LNG feedgas was strong, and lower production contributed to the market's overall trend.