Ryan Dezember of The Wall Street Journal tells his readers that warmer temperatures in December have pushed down prices for natural gas despite the frigid temps at the start of 2024, causing a surplus in U.S. natural gas. Dezember writes:
U.S. natural-gas production notched new highs in December, pushing down prices for the heating fuel despite the frigid start to 2024.
The flood of gas, along with forecasts for unusually warm weather in the coming weeks, has knocked natural-gas prices down by more than 30% since the start of heating season at the end of October.
Natural-gas futures for delivery next month ended Thursday at $2.571 per million British thermal units, 13% cheaper than a year ago. March futures cost 44% less than a year ago after settling at $2.18. […]
RBC Capital Markets analyst Christopher Louney said that without another cold snap to burn up more of the oversupply, he doesn’t expect prices to rise much until late this year or early 2025, when the next batch of liquefied natural gas export terminals are scheduled to open and boost demand.
“Winter may not be over, but based on current forecasts it looks like it could be,” he said.
Read more here.
