Natural Gas Falls on Weather, Coronavirus

June 1st, 2020

Natural gas prices decline 7 cents to $1.78/mmBtu as investors worry mostly-mild spring weather and coronavirus-related factory shutdowns will keep demand muted.

“This market has been looking for some bullish assistance from the weather factor and although weekend updates are still favoring above normal trends across most of the US,

deviations from normal don’t appear sufficient to spur much buying interest,” say analysts at Ritterbusch & Associates.

The analysts say prices could find some support later in the week if an EIA storage report turns out bullish,

but they say sustained price-gains probably won’t happen unless the upcoming summer brings hotter-than-normal temperatures that could support electricity grid demand for cooling.

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