Natural Gas Prices Retreat on Low Demand and Strong Supply

26-Jun-2015

Natural gas prices gave back nearly all of the prior session’s gains on signs the market may be returning to its chronic oversupply.

Prices for the front-month July contract settled down 7.7 cents, or 2.7%, at $2.773 a million British thermal units on the New York Mercantile Exchange. The July contract expired at close. The more heavily traded August contract settled down 9.6 cents, or 3.4%, at $2.77/mmBtu.

Many traders may have been pushing back against strong gains from Thursday. Government data yesterday showed the smallest weekly surplus in more than two months and analysts said a long-oversupplied market had come into balance. But many feel that balance is only temporary. (By TIMOTHY PUKO, Wall Street Journal)

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Also, see our look at near term pricing.