Natural Gas Prices Retreat on Low Demand and Strong Supply

Natural gas prices gave back nearly all of the prior session’s gains on signs the market may be returning to its chronic oversupply.

Prices for the front-month July contract settled down 7.7 cents, or 2.7%, at $2.773 a million British thermal units on the New York Mercantile Exchange. The July contract expired at close. The more heavily traded August contract settled down 9.6 cents, or 3.4%, at $2.77/mmBtu.

Many traders may have been pushing back against strong gains from Thursday. Government data yesterday showed the smallest weekly surplus in more than two months and analysts said a long-oversupplied market had come into balance. But many feel that balance is only temporary. (By TIMOTHY PUKO, Wall Street Journal)