Natural Gas Prices Hits 14-Year Low – When Will it Rebound?

gas oil priceThe price of natural gas hit a 14-year low yesterday. Ouch. We don’t normally report on the ups and downs of natgas prices because, well, because it goes up and down–all the time. Broad trends in the price we report on, but not the day-to-day vagaries of natgas prices. But we are today. Why? Because there appears to be no end in sight for these low prices. MDN editor Jim Willis lives in the Binghamton, NY area. It’s usually cold and cloudy in Binghamton in the winter–from about the end of October to mid-April. No lie. Winter is typically that long around these parts. Yesterday? Mid-60s. Today? In the 50s and sunny. We do love it–but it’s beginning to freak us out! Point: As was predicted by natural gas weather guys we heard a few months ago at a Bloomberg meeting in NYC, the weather in the northeast during this monster El Niño winter will be drier than usual and warmer than usual. Translation: We’re going to use a whole lot less heating fuel and natural gas. More supply than demand means prices go down and they stay down. And that’s just what’s happening. Traders are giving up on a cold snap causing prices to rebound, and that capitulation is reflected in the price of natural gas…

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