Weekly Losses Overwhelm Natural Gas Market as Shoulder Season Looms

Natural gas futures ended nearly unchanged on Friday but posted a significant weekly loss as falling power sector demand and the approaching shoulder season outweighed strong liquefied natural gas (LNG) feedgas and lower production.

The weekly loss was due to rapidly fading power sector demand, which plunged week-over-week. However, LNG feedgas offset some of this erosion in demand, while lower production also contributed to a tighter market.

At a Glance: Power burn plummeted week-over-week, while LNG helped stabilize prices. Storage levels got an unexpected boost from wind generation, further stabilizing the market.