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Natural Gas Crashes on Weather, July 4 Holiday

July 1, 2019 at 18:48 by Vladimir Vyun

While crude oil was making attempts to rally, natural gas crashed on Monday. Some market analysts speculated that it is because of relatively cool temperatures at the start of summer. Others argued that the decline was the result of the July 4 holiday in the United States this week. Factories and other big consumers of gas will be closed for the holiday, resulting in lower-than-usual demand for the commodity.

Futures for gas will likely react to the supply report from the Energy Information Administration released later this week. While the report is usually released on Thursday, this week the release was moved to Wednesday due to the holiday. Last week, the data showed a smaller-than-expected growth of US gas inventories, resulting in big gains for the commodity.

Futures for delivery of natural gas in August dropped 1.86% to $2.27 per million British thermal units as of 18:43 GMT on NYMEX today.

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