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Natural Gas Price Continues to Slide as Surplus and Decreased Demand Weigh on Market

Natural Gas Price Continues to Slide as Surplus and Decreased Demand Weigh on Market

Natural Gas April 5, 2023

The price of natural gas remains in negative momentum, as it hit 2.09 USD per MMBTU on April 5th, 2023, hovering around a 30-month low. This represents a 2% decrease from the previous week's price of 2.14 USD per MMBTU, a 27% decrease from the previous month's price of 2.66 USD per MMBTU, an 81% decrease from the price three months ago, which was 3.78 USD per MMBTU, a 179% decrease from the price six months ago, which was 5.84 USD per MMBTU, and a 185% decrease from the price a year ago, which was 5.95 USD per MMBTU. Despite some gas producers cutting drilling, natural gas output from crude oil operations in shale fields is still expected to increase despite of low gas prices. Mild weather this winter led to low heating demand and surplus gas storage, which may cause further pressure on gas prices. The surplus has caused a 50% drop in gas futures since the beginning of the year, marking a record decline for a quarter. U.S. gas storage currently sits about 21% higher than usual for this time of year, and this surplus is likely to set up inventories to reach record highs before next winter's heating season. The global economy's slowdown suggests decreased demand for electricity production, which will require less natural gas. The lack of centralized planning for natural gas, unlike crude oil with OPEC, may cause further pressure on gas prices. The market may see the $2.00 level as a potential floor, and as temperatures rise, demand is expected to drop further. PolyMart does not provide any assurances or guarantees regarding the reliability, accuracy, completeness, or quality of the information available on its website, app, or through any of its services. Therefore, the company is not responsible for any errors, omissions, loss, or damage that may result from the use of the website or app. It is advisable for users to exercise caution and independently verify any information obtained from these sources before relying on it for any purpose