After making a push to $4.016 on the Nymex on 9/9, natural gas has fallen back below four dollars. This has proved to be a common theme the last few months. The price of natural gas rises to around four dollars but loses momentum, and comes back down.
This week’s regression can be attributed to an increase in U.S. natural gas supplies. The U.S. Energy Information Administration released its weekly report on Thursday, 9/11, showing a rise in natural gas storage of 92 billion cubic feet by the end of Sept. 5. That marked the 21st consecutive week where storage came in above the five-year average, calming concerns over tightening supplies.
EarlyBird Power Team