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Natural Gas May Be the Next Commodity to Trade Below Zero

  • Prices languish while European inventories at seasonal record
  • Demand collapse and tight storage briefly forced oil to -$40
China Gas Craze Gets Help From Trucks as Pipelines Can't Keep Up
Photographer: Qilai Shen/Bloomberg
Updated on

The specter of negative prices is hanging over energy markets more than a month after oil’s unforgettable crash below zero.

While crude has staged a rapid recovery after a deal by the biggest producers to curb a surplus, the $600 billion global gas market remains extraordinarily oversupplied. Traders and analysts say the worst may be yet to come as demand falls and storage nears capacity, creating the ideal conditions for negative prices in some parts of the world.