Natural Gas Hits Generational Low
June 29, 2020
Natural gas futures hit a 25-year low last week as a large inventory build and low demand weighed on the market. Last week’s EIA natural gas storage report showed a build that exceeded most projections. After an increase of 120 bcf from the previous week, stocks are now 739 bcf higher year-over-year and just barely within the five-year maximum. The average build for this week is 60 bcf with a range of 42 to 79. As a result, futures contracts traded as low as $1.47/mmbtu, a print not seen since August 1995. The record low is $1.05/mmbtu from 1992.