It's been a summer of open windows and dormant air conditioners in the Eastern U.S. as the mercury has failed to break 85 degrees on most days and night-time lows fall down to the mid-50s in much of New England.
And that partially explains why natural gas prices are plunging to seven-month lows. Gas-fueled power plants are operating at a low hum as electricity demand has been unusually tepid. When you consider that late July typically represents a turning point for summer temperatures, this may turn out to be a year without any major heat waves. Good news indeed for residents in the Eastern U.S. after enduring an unusually dispiriting frigid winter.
As demand for gas remains subpar, gas storage facilities are re-filling at a rapid rate, turning gas back into a buyer's market. That's a quick change from six months ago when gas was being consumed at a faster-than-normal rate. And the resulting price collapse has left many to wonder: Will gas prices keep plunging, or have they hit bottom?
The answer to that question: Gas prices are likely to keep falling. Continue reading "Have Natural Gas Prices Hit Bottom?"