# As demand for fuel falls, gas prices and output also take a hit | Coronavirus pandemic | Al Jazeera

> Demand for liquefied natural gas from Japan, China, South Korea and India has fallen sharply as virus-containment measures hit economies. Asia's spot LNG price dropped to a record low of $1.85/mmBtu, and some suppliers have begun cutting output.

- Date: 2020-05-07 · published 2020-05-07T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/10440-as-demand-for-fuel-falls-gas-prices-and-output-also-take-a-hit-coronavirus
- Commodities: [Natural Gas](https://feedsoft.ai/c/NATGAS.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Collapsing LNG demand and record-low spot prices are weighing on global gas benchmarks, with producers at risk of shutting in supply. Lower gas prices reduce input costs for nitrogen fertilizer and energy.

## Read by commodity

- WTI: bearish ▼
- NATGAS: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| NATGAS | 2020-05-12 | 5 | -18.0% | -3.4 | Record-low Asian spot LNG prices and falling LNG demand weakened the global backdrop and US export pull, adding bearish pressure. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| NATGAS | 2020-05-12 | [U.S. natgas futures slide as mild weather and coronavirus cuts demand \| Financial Post](https://feedsoft.ai/events/10439-u-s-natgas-futures-slide-as-mild-weather-and-coronavirus-cuts-demand-financial.md) | +0.8% | -2.2% |
| NATGAS | 2023-03-20 | [Global Natural Gas Prices Keep Falling as Demand Weakens, Banking Crisis Weighs on Markets – LNG Recap](https://feedsoft.ai/events/37032-global-natural-gas-prices-keep-falling-as-demand-weakens-banking-crisis-weighs.md) | -10.6% | -5.7% |
| NATGAS | 2020-05-07 | [Virus Lockdowns Pummel Global Gas Demand, Force LNG](https://feedsoft.ai/events/53321-virus-lockdowns-pummel-global-gas-demand-force-lng.md) | -17.4% | -9.0% |
| NATGAS | 2020-05-11 | [Natural Gas Exports Slow as Pandemic Reduces Global Demand - The New York Times](https://feedsoft.ai/events/10443-natural-gas-exports-slow-as-pandemic-reduces-global-demand-the-new-york-times.md) | -7.2% | -2.7% |
| NATGAS | 2020-03-26 | [How coronavirus will alter natural gas markets](https://feedsoft.ai/events/54311-how-coronavirus-will-alter-natural-gas-markets.md) | -5.2% | +6.3% |
| WTI | 2020-02-25 | [Oil falls for fifth day on demand concerns as coronavirus spreads](https://feedsoft.ai/events/7111-oil-falls-for-fifth-day-on-demand-concerns-as-coronavirus-spreads.md) | -9.0% | -54.6% |
| WTI | 2020-03-23 | [From Asia to the U.S., fuel prices pummeled by coronavirus fallout](https://feedsoft.ai/events/54329-from-asia-to-the-u-s-fuel-prices-pummeled-by-coronavirus-fallout.md) | -15.4% | -54.6% |
| WTI | 2020-09-25 | [Oil prices down for the week on new coronavirus concerns](https://feedsoft.ai/events/51290-oil-prices-down-for-the-week-on-new-coronavirus-concerns.md) | -4.0% | +0.9% |

## Sources

- aljazeera.com: https://www.aljazeera.com/economy/2020/5/7/as-demand-for-fuel-falls-gas-prices-and-output-also-take-a-hit

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.