U.S. Natural Gas Futures Fall on Growing Storage Surplus - Barron's

U.S. Natural Gas Futures Fall on Growing Storage Surplus

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Last Updated:
March 7, 2024 at 3:41 PM EST Live Coverage Feed

32 min ago

Natural gas futures lose ground after the EIA reports a fifth consecutive below-average draw from underground storage, while weather forecasts point to low demand that's likely to swell inventory surpluses into the end of the heating season.

Natural gas storage decreased by 40 Bcf last week to 2,334 Bcf, which is 31% more than the five-year average.

"It is this huge supply overhang that has halted price gains to about the $2 level in recent sessions," Ritterbusch says in a report. "With continued mild temperatures spread across most key consuming regions now stretching to the shoulder period, a further surplus expansion to as much as 700 Bcf is within the realm of possibility."

Natural gas settles down 5.8% at $1.818/mmBtu.