US Natgas Prices Fall 3.5% Amid Lower Demand Forecasts
US natural gas futures fell about 3.5% on Friday due to forecasts for lower demand next week, while traders also factor in volatile trading ahead of contract expiration on Monday.
The price drop comes after a significant increase on Thursday, when the front-month contract soared by 9% and closed at its highest since June 25. For the week, however, the front-month was still up about 9% after gaining around 3% last week.
Looking ahead to next week, analysts predict that average gas demand in the Lower 48 states will fall from 108.0 billion cubic feet per day (bcfd) this week to 102.8 bcfd before rising to 105.5 bcfd in two weeks. Meanwhile, global gas prices have spiked in recent years due to supply disruptions linked to Russia's invasion of Ukraine and the U.S.-Israeli war with Iran.