Commodities▼ Bearish
Natural Gas Stuck at $2.75 as Weak Demand, Oversupply Persist
Natural gas held $2.75 as weak demand and oversupply kept prices pinned, with Qatari imports the only potential catalyst later in the year.
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Natural gas hovered near $2.75 on Tuesday, a level that has shifted between minor support and resistance during a seasonal period of tepid consumption. The front-month contract settled at $2.75 on Monday, unchanged from the prior week, reflecting a market caught between lingering oversupply and a lack of weather-driven demand.
Heating demand has faded with the end of winter, and summer cooling demand has not materialized because no sustained heatwave has emerged in major consuming regions, said Chris, a proprietary trader with more than 20 years of experience. The supply glut, built during a mild winter, continues to hang over the market.