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World NewsNatural gas drops 7%, sharpest decline since January following big run-up on...

Natural gas drops 7%, sharpest decline since January following big run-up on supply concerns

Natural gas futures dipped as a lot as 8% on Wednesday, pulling again from a greater than seven-year excessive above $6 per million British thermal models hit throughout the prior session.

The contract for November supply fell to a low of $5.42 on Wednesday, earlier than recovering a few of these losses to settle 6.85% decrease at $5.47 within the worst day by day efficiency since January.

Natural gas costs have shot up this month amid an vitality crunch in Europe that is despatched energy costs to all-time highs.

Natural gas futures are up 26% for September, and costs have greater than doubled since the start of the 12 months.

Despite Wednesday’s downturn, some imagine it is a non permanent halt in an in any other case upward trajectory.

“Natural gas fundamentals all point to higher prices: robust Chinese demand, shut-in offshore US production, and low supplies from Russia,” strategists at Oanda mentioned. “The natural gas market has a supply problem and it doesn’t look like that will change anytime soon.”

Correction: A earlier model misspelled Oanda.

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