OIL & GAS

Natural gas prices may continue to correct till November

In September, natural gas prices on the NYMEX and MCX have declined by approximately 29 per cent.

The fall in natural gas prices has a lot to do with the demand and supply which is a very intrinsic factor which decides the price trajectory of the commodity. Moreover, the fall in the GDP in the recent quarter also contributed to the fall in the price of the commodity in the recent month.

Global economic slowdown, amid fall in consumption due to the lockdown on account of the pandemic led to the fall in industrial activity in the US, which in turn resulted in the lowest ever consumption of natural gas in May 2020, falling by 8 per cent compared with the same period in 2019.

The year-on-year fall (May 2020) is also the largest decline since July 2009, (2007-2009 recession period).

Source
ET Energy World
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