# More to the weakness in energy prices than trade | Capital Economics

> Capital Economics argues that the weakness in natural gas and coal prices reflects long-standing issues rather than the latest US-China trade tensions. Both commodities are down roughly 30-50% year to date. The firm expects low prices through 2020-21 because of a global surge in gas output and structural decline in coal demand.

- Date: 2019-08-02 · published 2019-08-02T12:00:00.000Z
- Category: market · region Global · magnitude low
- Page: https://feedsoft.ai/events/7904-more-to-the-weakness-in-energy-prices-than-trade-capital-economics
- Commodities: [Natural Gas](https://feedsoft.ai/c/NATGAS.md)

## Why it matters

Persistent oversupply of gas keeps energy input costs low for feed producers and dries up coal-to-gas switching demand. The outlook points to a prolonged bearish price environment.

## Read by commodity

- NATGAS: bearish ▼

## Sources

- capitaleconomics.com: https://www.capitaleconomics.com/clients/publications/energy/energy-chart-book/more-to-the-weakness-in-energy-prices-than-trade

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