NEW YORK: US natural gas futures dipped on Friday on sufficient fuel in storage and lower heating demand, but prices marked their best week in 1-1/2 months as voluntary production curtailments are likely underway.
Front-month gas futures for April delivery fell 2.5 cents, to settle lower at $1.835 per million British thermal units (mmBtu).
“It still obviously looks like weather is the primary driver - it has been very bearish,” said Kyle Cooper, energy market analyst at IAF Advisors, adding that the market has been over-supplied due to lower demand driven by moderate temperatures across the country.
Despite the declines on Friday, natgas prices gained about 14.5% this week, the most since Jan. 12.
However, “it does look like the producers are indeed scaling back. The production prints at the end of the month were noticeably lower than they had been earlier in the month,” Cooper said.
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