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U.S. natural gas futures fell to a two-week low as forecasts pointed to milder weather and lockdowns kept businesses closed, reducing gas demand. Front-month June Henry Hub futures dropped 2.3% to about $1.78/MMBtu.
Declines were limited by output cuts tied to a collapse in oil prices.
Weaker gas demand and lower power-sector burn push gas prices down, which lowers the cost of gas-linked energy and fertilizer inputs. Continued oil-driven drilling cuts may cap the downside.
financialpost.comReutersMay 12, 2020After 59 past bearish macro events, Natural Gas moved a median +1.3% over 5 sessions (58% higher; middle half -5.0% to +5.2%), and -2.0% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
On the end date, Henry Hub June futures fell to a two-week low as mild weather and lockdowns cut gas demand, directly reflecting the demand-driven selloff.
