Natural Gas Price Plummets Below $4/mmBtu
July 17, 2014
Natural gas futures reached a new six-month low, falling under $4/mmBtu. A greater than forecasted supply gain continues to ease the markets that winter stockpiles will end up falling short of demand.
The natural gas stockpiles have enjoyed above-average increases for the 13th consecutive week. This paired along with the relatively milder weather in the Southeast, Great Lakes, New England, and Mid-Atlantic is spurring this price drop. However, despite gas production increasing 4.1% to an all time high of 73.08 billion cubic feet per day, the EIA projected that by October stockpiles (an estimated 3.43 trillion cubic feet) will still be the lowest its been since 2008.
However analysts are confident that despite natural gas storage at its lowest point in the past decade, the U.S. shale/gas energy revolution will help provide ample supply.