With weather-driven demand expected to decline on warming temperatures later this week, and with inventories expected to fill quickly in the weeks ahead,
natural gas futures were down in early trading Tuesday.
The June Nymex contract was off 4.5 cents to $1.781/MMBtu and are on target for their lowest closing price in more than two weeks as investors see increasing signs the commodity is starting to feel a delayed impact from coronavirus.
“The US natural gas market has become the latest victim of the coronavirus,” Price Futures’ Phil Flynn writes in a column for Fox Business.
“The shutdown of economies in Europe and Asia reduced the demand for natural gas.” Natural gas in storage in the US is at a 21% surplus to the five-year average,
and analysts say that could increase as the low-demand spring season progresses.