icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm

Natural gas prices fall to 14yr low on cheap crude, mild weather

Natural gas prices fall to 14yr low on cheap crude, mild weather
Price for natural gas on Monday plunged to its lowest since January 2002, following the sliding oil price and forecasts for unseasonably warm weather.

Gas futures for January dropped almost six percent to $1.88 per million Btu (British thermal units) at 01:46pm GMT.

The drop is because of above-normal temperature forecasts which could suppress demand through late December. This is counter to industry expectations of fuel prices climbing in the winter heating season.

“In order to keep the gas market balanced in 2016, you’re going to have to price supply off the market. For the first time in more than eight years, I’m actually forecasting production losses in 2016,” an analyst at BNP Paribas, Teri Viswanath was quoted by The Globe and Mail.

“As far as this week goes, it is hard to imagine an uglier scenario for ‘natty’ bulls,” Stephen Schork, president of Schork Group, told Bloomberg.

Besides seasonal demand, international natural gas prices rise and fall relative to oil because they are indexed to the price of crude oil.

On Monday, oil fell to a 7-year low on oversupply worries. Brent was down below $37 a barrel while the US benchmark WTI fell below $35 per barrel.

Dear readers and commenters,

We have implemented a new engine for our comment section. We hope the transition goes smoothly for all of you. Unfortunately, the comments made before the change have been lost due to a technical problem. We are working on restoring them, and hoping to see you fill up the comment section with new ones. You should still be able to log in to comment using your social-media profiles, but if you signed up under an RT profile before, you are invited to create a new profile with the new commenting system.

Sorry for the inconvenience, and looking forward to your future comments,

RT Team.