First of all, oversupply is the main reason for the decline in natural gas futures prices. The growth of global oil and gas industry and the rapid expansion of shale gas production in the United States have led to an increasing supply of natural gas. At the same time, in order to compete for market share, major natural gas producing countries have also increased their export efforts, further amplifying the contradiction of oversupply. Therefore, the supply of natural gas in the market exceeds demand, and the price decline has become an inevitable trend.
Secondly, warmer temperatures are also one of the reasons for the decline in natural gas futures prices. The two peaks of annual natural gas consumption appear in summer and winter, and the demand for natural gas in winter is the peak of the whole year. However, the warming temperature leads to the decrease of natural gas consumption in winter, which leads to the decrease of natural gas demand and natural gas futures price.
Thirdly, the change of American policy is also one of the factors that affect the price of natural gas futures. During the campaign, US President Trump promised to vigorously revitalize the US energy industry and provide strong support for the development of unconventional energy such as shale gas. However, the recent policy changes of the US government, including the revocation of environmental protection regulations and the withdrawal from the Paris climate agreement, will greatly promote the development of the US shale gas industry, increase the pressure on overseas sales, and make the decline in natural gas prices an inevitable result.
To sum up, the decline in natural gas futures prices is mainly due to factors such as oversupply, warmer temperatures and changes in US policies. Therefore, natural gas futures prices may still maintain a downward trend in the future.