NYMEX Price Crashes Following Warm 15-Day Weather Predictions

Even though the Freeport LNG export facility is in the midst of restarting and is now using 1.5 Bcf/d (billion cubic feet per day) of natural gas (out of a potential 2.1 Bcf/d when it's operating at full capacity), the new demand coming from Freeport was not enough to counter the "bad news" that the weather will not be as cold as previously predicted over the next 15 days. Weather not-as-cold spells less demand for natural gas overall, and the lack of demand has translated to a crash in the NYMEX futures price based on the Henry Hub, the national benchmark for gas trading. Yesterday the "front month" NYMEX gas price contract dropped 44 cents (17%) in a single day.

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