Forexpros – Natural gas prices plunged to decade lows Thursday, on a U.S. supply level report and warm winter weather.
On the New York Mercantile Exchange, natural gas futures for February delivery traded at USD2.313 per million British thermal units during late U.S. trade, plunging by 6.41%.
It earlier climbed to hit 2.486 BTU’s and is currently trading near its low of 2.312.
September, 4th, 2009 when prices made a 10 year low of USD2.408, was taking out today with new decade lows.
Winter temperatures in the U.S. have yet to reach levels cold enough to boost demand for the heating fuel. In the Northeast, there have been only four warmer Decembers in the last 117 years, according to the U.S. National Weather Service.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. fell by 87 billion cubic feet, after declining by 95 billion cubic feet the preceding week.
Analysts expected natural gas storage to decline 88 billion cubic feet.
Citibank made clear in a report last week, “In the near term, there appears to be no bottom for the front contract price as it continues to fall on weak seasonal heating demand.”
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in March gave back 0.41% to trade at USD100.34 a barrel.
Forexpros
