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The Wall Street Journal reported that natural gas prices fell on Friday due to concerns over demand. A snowstorm is set to hit the east coast of North America, but market watchers fear that won’t boost demand enough to help cut down oversupply.
The Wall Street Journal reported that natural gas prices fell on Friday due to concerns over demand. A snowstorm is set to hit the east coast of North America, but market watchers fear that won’t boost demand enough to help cut down oversupply.
As quoted in the publication:
Futures for February delivery recently fell 0.7 cent, or 0.3%, to $2.131 a million British thermal units on the New York Mercantile Exchange.
Moderate temperatures have reduced demand for natural gas as an indoor-heating fuel this winter, forcing producers to put more fuel in storage and pushing prices lower. As of Jan. 15, natural-gas inventories stood 17% above the five-year average for this time of year, according to the Energy Information Administration.
A blizzard expected to hit the U.S. East Coast this weekend could boost heating use, but analysts warn it could also cause power outages, which would reduce demand for natural gas as a power-generation fuel.