Natural Gas Hits 17-Year Low as Warmer Weather Takes Over
Following a week of declines Natural gas prices plummeted on the opening day of the trading week, following warm weather forecasts across the United States of America and in most of Europe.
Having edged marginally higher on Friday on the back of a weakening US Dollar, Natural Gas still declined 4.07% for the week overall, marking a fourth successive week of declines for the heating commodity.
Today has seen Natural Gas drop nearly by 5% whilst other commodities including Crude Oil and Gold have all posted strong increases. Leading today’s heavy decline in the price of natural gas was a bout of warmer weather forecasts in Europe and the US. This added to growing fears regarding the price of natural gas, heightened by the news released on Thursday by the U.S. Energy Information Administration. The government agency reported that natural gas storage in the U.S. dropped by 117 billion cubic feet, far less than the expected decline of 139 billion.
The widening supply glut and lowered expectations of future demand weighed heavily with prices falling to their lowest level since 1999. Natural Gas has fallen around 27% since the start of the year as unusually mild winters in the US and EU continue to reduce levels of demand.
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