2023-06-09 17:25:13 ET
U.S. natural gas futures fell Friday on forecasts for less demand over the next two weeks than previously expected, while European gas futures soared as much as 23%, as traders reassess supply risks on signs of global competition for liquefied natural gas.
Friday's decline in U.S. prices came after five straight days of gains as U.S. generators burned more gas to produce electricity due to reduced wind and solar power related in part to smoke from wildfires in Canada.
Front-month Nymex natural gas ( NG1:COM ) for July delivery closed -4.2% on Friday but gained 3.8% for the week to $2.254/MMBtu, its sixth weekly gain out of the past nine.
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Around the world, however, gas futures have been volatile, with prices at the Dutch TTF benchmark in Europe jumping as much as 24% Friday to ~$10/MMBtu after sliding 13% on June 6 and surging 25% on June 5.
While high inventories and subdued industrial demand have depressed prices in Europe in recent months, analysts said traders are on edge about the potential for tighter supplies.
Several outages in Norway, Europe's biggest supplier, have been extended, and there are concerns that the strong inflows of LNG - which have helped the continent recover from the previous crisis - could fall in the coming months after weeks of downward trending prices.
The concerns coincide with higher temperatures as summer starts, which may raise cooling needs from Europe to Asia and boost competition for LNG.
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U.S. natural gas slips after winning streak; Europe gas soars in volatile action