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Why Are Natural Gas Prices Plunging?

By Daniela HathornCommoditiesMay 23, 2023 04:58AM ET
www.investing.com/analysis/why-are-natural-gas-prices-plunging-200638341
Why Are Natural Gas Prices Plunging?
By Daniela Hathorn   |  May 23, 2023 04:58AM ET
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Natural Gas prices began this week with a drop, losing over 5% and trading for $2.5537/mmBtu. Last week was dominated by news of weak supply and low storage levels.

But a bearish sentiment has taken hold of markets on Monday, possibly driven by some profit-taking, as well as a forecast for warm weather that will arrive later than usual.

Natural gas traders are already focusing their analysis on the weekly EIA storage report from the EIA, where the impact of wildfires in Alberta, Canada, and lower wind energy production will become clearer.

Here's a detailed looking at natural gas news and chart analysis.  

Why Are Natural Gas Prices Plunging?
 

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Why Are Natural Gas Prices Plunging?

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Comments (6)
Teena Marie
Teena Marie May 26, 2023 4:45PM ET
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This is not rocket science. Natural gas is used for heating and cooling. Prices drop when you don't need one or the other in May and June. Summer weather, hurricane season, and low inventory will tell a different story in August.
Erikke Evans
Erikke May 24, 2023 8:47AM ET
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I doubt we'll see $2 again this year. I'm looking to accumulate on every dip lower.
Stoyan Trifonov
D1I1I May 23, 2023 12:01PM ET
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I have noticed lately? NG up Oil down or NG down Oil up on the daily any reason why?
Thomas McGrath
Thomas McGrath May 23, 2023 11:43AM ET
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Natural gas does not have low storage levels. Thats why it went to 2
William Plotts
William Plotts May 23, 2023 9:05AM ET
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Wait until they put another 10 rigs on the ground? The expensive of consumbles for drilling vs 2.35 a BTU ?
Priyanka Nahata
Priyanka Nahata May 23, 2023 6:54AM ET
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buyers of physical natural gas are literally in crunch as prices are not rising and they are not making any profit which is unfair . storage of gas isnt possible with every human .
 
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