Natural Gas Prices Crash On Warm Weather Warnings
Spot prices for natural gas fell sharply on Friday as forecasts for warm weather spooked traders who were hoping for increased demand heading into what is normally cold season in the United States.
Natural gas prices were trading down 7.52% on Friday afternoon at $2.313. And the loss wasn’t just on Friday. Natural gas prices started out at $2.738 on Sunday – a loss of 15.5% for the week.
It’s typical this time of year for natural gas inventories to start to draw down as cold weather sets in, but the National Weather Service is calling for likely above-average temperatures in most of the country over the next 6-12 days, and traders fear that not enough of a drawdown will be realized, continuing the glut and therefore lower natural gas prices.
Reported by Oil Price