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Natural Gas Trading Lower on Cooler Forecasts and Lower Demand

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Natural gas prices eased early Friday on cooling long-term forecasts and lower demand.

Gas for June delivery was last seen down $0.05 to US$2.97 per million British thermal units.

The drop comes as long-term forecasts from the National Weather Service see most states with seasonal or cooler temperatures over its six to 10 day outlook, though states in the big markets of the Northeast and Upper Midwest will be hotter than usual, offering a boost to cooling demand. However LNG demand is weak as facilities begin seasonal maintenance.

"Production fell off at the start of the week, somewhat offset by depressed demand from LNG feedstock, which hit shoulder season lows as multiple terminals on the coast, including Freeport, Golden Pass, and Cameron, have confirmed ongoing maintenance activities in May," Christopher Louney, a natural gas and gold strategist at RBC Capital Markets, wrote.

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