Natural gas prices fell over 5% this past week as investors expect mild weather conditions in the US to dampen demand for power plant fuel.
 
On Wednesday, natural gas futures saw a slight rise as fears over a potential disruption to supplies in the Gulf of Mexico boosted prices, but gains were limited as weather forecasts in the US continued to show moderating heat. The outlook of the US economy and weaker-than-expected growth in Europe could weigh on gas demand this year. Goldman Sachs lowered its price forecasts for UK natural gas for the second half of this year by $1.70 to $10.65 per million British thermal units due to poor global economic outlook.
 
Natural gas for October delivery traded at $3.95 per million British thermal units on Thursday, approximately 70% below its 2008 high. The US Energy Department will release a stockpile report on Thursday at 3.30pm (London time) and analysts expect it to reveal an increase of 45 billion to 49 billion cubic feet of natural gas storage inventories for the week ending 12 August.