Forecasters call for still more mild winter weather into mid-December. As a result, natural gas prices have fallen 5.1 percent the past two sessions.
Natural gas for January delivery ended the day down 12.3 cents, or 3.4 percent, at $3.461 a million British thermal units on the New York Mercantile Exchange. The January contract fell as low as $3.444 during the session, but settled even with its previous low.
Futures last week actually jumped to their highest levels since early November after a surprise decline in U.S. gas stockpiles. The U.S. Energy Information Administration said inventories fell to 3,851 Bcf as of Friday, November 25, according to the EIA’s weekly report. This represents an implied net withdrawal of 1 Bcf, the first withdrawal of the 2011-2012 winter heating season. The withdrawal was considerably smaller than both the 5-year average withdrawal of 29 Bcf and last year’s 21 Bcf draw. Stocks are now 261 Bcf and 41 Bcf above the 5-year average and last year, respectively.
The regional breakdown shows that the East Region was actually the only region with a net withdrawal during the week. This net withdrawal occurred despite relatively warm weather in the East Region during the week. The West and Producing Regions built by 2 Bcf and 14 Bcf, mostly offsetting the draw in the East Region. All three regions remain well above average levels, but the Producing Region stands out at 159 Bcf (14 percent) above average.
Forecasts may vary, but your business’ electricity rate doesn’t have to. When it comes to buying electricity, timing is everything. At Live Energy, we keep our finger on the market’s pulse—locking in a low rate with the right electricity provider has never been easier. For more information on how we can help you find the right electricity plan for your business, contact us at (877) 810-7770 today.