US natural gas futures fell 7% to their lowest level in two weeks, amid expectations that demand over the next two weeks will fall more than previously expected.
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US gas futures fall 7%
US natural gas futures fell 7% to their lowest level in two weeks, on Tuesday, on record production, amid expectations that demand over the next two weeks will fall more than previously expected.
That price drop came despite a 5% jump in European gas prices on concerns regarding Russian supplies and expectations that temperatures in many parts of the United States will remain above normal at least until mid-August.
And gas contracts to the nearest maturity ended the trading session on the “NYMEX” as low as 5.77 cents, or 7.0%, to record at the settlement of $ 7.706 per million British thermal units, the lowest level since July 19.
This is the biggest one-day drop in percentage terms since late June when the contract fell regarding 17%.
And US gas contracts are up regarding 105% so far this year, as much higher prices in Europe and Asia keep demand for US LNG exports strong, especially since the volume of gas flowing from Russia to Europe has decreased.
Gas is traded around $62 per million thermal units in Europe and at $45 in Asia.
