NYMEX Henry Hub Price Crashes with Warm Weather Forecast

The commodity price for natural gas, as expressed by the NYMEX Henry Hub futures contract (for January), fell 10.5% in early trading yesterday before finally closing at $2.43/MMBtu, down 15 cents (6.17%) from the previous day. Why the big drop when prices are already low? Lack of demand due to warm weather. In fact, according to the National Weather Service, the entire continental United States will be warmer than average for the period of Dec. 19-25. Plump storage numbers, coupled with the weather, had natgas traders heading for the exits.

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