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Natural gas prices could follow oil into negative territory, according to Wang Yusuo, the chairman of ENN Energy Holdings, one of China’s largest distributors. According to a Bloomberg report, he said a lack of storage could send prices negative for a short while.

Natural gas has traded weaker all year, at or around record lows because of oversupply and lack of demand. The dynamics are very similar to oil markets. Last month, the May WTI contract went negative as expiry approached because of a lack of capacity to store the oil.

“For natural gas, I have heard about the possibility of negative prices. I also think it could happen,” Wang was reported as saying. “That’s because natural gas has even more limited storage capacity and its production is also more rigid. So it may happen. But I don’t think it will be a dominant or long-lasting scenario.”

Read the latest natural gas news in the Marketsx online trading platform.

Chart: Nat gas prices are testing the Apr 24th low and briefly plunged below this level, which may open up path to 1.60 again.

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