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Natural Gas Drops to Pandemic-Era Low as US Supply Glut Worsens

  • Prospects of bullish, end-of-winter weather systems are fading
  • Prices tumbled 80% since touching a 14-year high last summer
Updated on

US natural gas futures have fallen to levels not seen since pandemic-era lockdowns more than two years ago that strangled the economic activity underpinning energy demand.    

The combination of weaker-than-anticipated winter heating demand in the world’s biggest economy and a freak industrial outage that buried the domestic gas market in excess supplies has gutted prices for the furnace and power-plant fuel. It’s a dramatic turnaround from just six months ago, when fears of impending shortages as the coldest time of year approached drove prices to a 14-year high.