U.S. Natural Gas Dips Below $2 Without a Cold Snap in Sightby and
Natural gas heads for second consecutive weekly decline
U.S. gas futures trade at lowest seasonal price since 1998
Winter is about to start in the Northern Hemisphere, and you’d never know it from looking at U.S. natural gas prices. On Thursday they dipped below $2 per million British thermal units for the second time in more than three years.
The fuel is trading at the lowest level since 1998 for this time of year as forecasts show no cold spell in sight for the eastern U.S., suppressing demand. Hedge funds have been betting against higher gas prices for the last 11 months.
Gas prices are plunging as supply from shale reservoirs in the eastern U.S. floods the market, pushing U.S. production toward a record. Analysts from Bank of America Corp. to Deutsche Bank AG have cut price outlooks as a mild weather threatens to expand the stockpile surplus.
Natural gas for January delivery fell as much as 1.5 percent to $1.985 per million British thermal units on the New York Mercantile Exchange, and traded at $1.996 by 7:59 a.m. in London. Prices have declined 31 percent this year.