# Gas benchmarks converge at record lows amid the global lockdown

> Gas benchmarks in Europe, Asia and the US converged near $2/mmBtu amid the global lockdown. The IEA projects global energy consumption could fall 6% in 2020 and gas demand could drop 2.7% to 5%, its first annual decline since 2008-2009. A 2019 surge in LNG supply growth had already created an oversupply before the pandemic.

- Date: 2020-05-11 · published 2020-05-11T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/10442-gas-benchmarks-converge-at-record-lows-amid-the-global-lockdown
- Commodities: [Natural Gas](https://feedsoft.ai/c/NATGAS.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

A demand decline on top of a large LNG supply overhang keeps gas prices depressed, lowering energy and fertilizer input costs. The price floor depends on how fast producers cut output.

## 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 | Global gas benchmarks converging at record lows amid lockdowns and an LNG oversupply point to broad demand weakness weighing on Henry Hub. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| NATGAS | 2020-06-16 | [Price Convergence of Global Gas Markets](https://feedsoft.ai/events/52797-price-convergence-of-global-gas-markets.md) | -0.1% | +5.4% |
| NATGAS | 2017-03-30 | [The reshaping of the global LNG market](https://feedsoft.ai/events/72170-the-reshaping-of-the-global-lng-market.md) | +4.6% | -0.0% |
| 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 | 2020-03-27 | [The Oil Price Collapse Could Reshape Global Natural Gas Markets \| Georgetown Journal of International Affairs \|
    Georgetown University](https://feedsoft.ai/events/54312-the-oil-price-collapse-could-reshape-global-natural-gas-markets-georgetown.md) | -7.8% | +5.6% |
| NATGAS | 2017-04-06 | [Europe, the heart of the global gas market \| Wood Mackenzie](https://feedsoft.ai/events/71665-europe-the-heart-of-the-global-gas-market-wood-mackenzie.md) | -5.1% | -1.8% |
| WTI | 2020-03-03 | [GLOBAL MARKETS-Stocks slide, 10-year Treasury yield hits record low after Fed's emergency rate cut](https://feedsoft.ai/events/7172-global-markets-stocks-slide-10-year-treasury-yield-hits-record-low-after-fed-s.md) | -33.6% | -66.1% |
| WTI | 2020-12-01 | [Canadian dollar strengthens as economy grows at a record pace - The Globe and Mail](https://feedsoft.ai/events/49874-canadian-dollar-strengthens-as-economy-grows-at-a-record-pace-the-globe-and-mail.md) | +1.1% | +5.9% |
| WTI | 2020-03-27 | [The Oil Price Collapse Could Reshape Global Natural Gas Markets \| Georgetown Journal of International Affairs \|
    Georgetown University](https://feedsoft.ai/events/54312-the-oil-price-collapse-could-reshape-global-natural-gas-markets-georgetown.md) | +37.1% | -32.8% |

## Sources

- fsr.eui.eu: https://fsr.eui.eu/rendez-vous-at-2-mmbtu-gas-benchmarks-at-record-lows-amid-the-lockdown/

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