Increased Supply Combined With Decreased Demand Send Natural Gas Prices Another Leg Lower

A "perfect storm" of factors led to almost a 2.5% decline in May natural gas prices today. 

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natural gas commodity weather

The downward move was strongest at the front of the natural gas curve, but later dated contracts moved notably lower as well. 

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natural gas commodity weather

On the supply side, natural gas production trended higher over the weekend, and while not back to record high levels, is quite robust. 

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natural gas commodity weather

As if the supply increase wasn't enough, the demand side also shifted much weaker with notably warmer weather forecast changes this weekend. Forecast GWDDs now sit solidly below normal for the second half of the month. 

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natural gas commodity weather

The changes from Friday were quite drastic. 

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natural gas commodity weather

To put this into map form, we take a look at projections for the current 6-10 and 8-14 day compared to those periods from back on Friday. 

natural gas commodity weather

While the exact dates of these forecasts are not perfectly aligned, it definitely still tells quite the visual story regarding the much warmer shift. 

Disclaimer: To begin receiving both our technical and fundamental analysis of the natural gas market on a daily basis, and view our various models breaking down weather by natural gas demand ...

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