US natgas plunges 4.14% on lower demand

19 March 2008 20:22  [Source: ICIS news]

HOUSTON (ICIS news)--US natural gas futures plunged 39 cents (4.14%) to close at $9.024/m Btu on Wednesday amid seasonally reduced demand and profit-taking from Tuesday’s rebound.

Wednesday’s loss drove prices to their lowest closing value since 21 February when the spot contract settled at $8.965/m Btu. The April contract has lost more than $1.20 since 13 March when the contract ended that session at $10.23/m Btu.

Sources said milder weather was moderating demand for winter heating fuels and raised the chance that natural gas inventories could end the season above the five-year average stock level which would make restocking during the summer months easier.

Selling pressure was found throughout the energy complex with sharp drops in crude oil and refined product contract prices.

By: Brian McIntyre
+1 713 525 2653

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