Natural Gas Drops on Warmer Weather Forecasts
U.S. natural gas prices dropped over 12% this morning!
Market and traders digested new weather forecasts auguring warmer weather in January.
Tweet On natural gas prices
Natural gas futures for January 2023 delivery traded as low as $4.60 per million British thermal units this morning, after having settled yesterday at $5.28.#Gas #prices pic.twitter.com/xb2FI4ljCZ
— The_Journalbiz (@the_journalbiz) December 28, 2022
FactSet chart on natural gas
Natural gas futures for January 2023 delivery traded as low as $4.60 per million British thermal units this morning, after having settled yesterday at $5.28. The last time front-month natural gas futures traded as low was in March.
The primary driver of the move appears to be new forecast data extending the duration of the current warmer-than-normal weather pattern in the Eastern half of the country further into the middle of January.
“With highs of 60s to lower 80s over the southern US going forward, and with highs of 40s to 60s over the Great Lakes and eastern US, national [natural gas] demand will drop to the lowest levels of the past 40-years,” said NatGasWeather.com in their daily report.
