Natural Gas Prices - Dec 14
Posted: Fri Dec 14, 2018 3:04 pm
Why is the price of natural gas down today?
"As of 2:00 PM ET on December 14, the population-weighted nationwide temperature is 54.9°F which is 1.2°F warmer than yesterday and 7.3°F warmer than the historical average. Accumulated Natural Gas-Weighted Degree Days (GWDDs) through 2:00 PM EDT tally 18.1 GWDDs which is 1.8 GWDDs less than yesterday through the same time and 9.3 GWDDs less than average. This suggests a below-average contribution of temperature to natural gas demand." from http://www.celsiusenergy.net/p/intraday-weather.html
The price you see for natural gas is the front month NYMEX futures contract, which today is January. Natural gas futures are much more thinly traded than oil futures contracts, so a change in the weather forecasts can have a significant impact on the contract. Mild weather is now expected for ten days. Should turn colder than normal on Christmas Eve.
Natural gas in storage is still dangerously low for this time of year and winter is just getting started.
"As of 2:00 PM ET on December 14, the population-weighted nationwide temperature is 54.9°F which is 1.2°F warmer than yesterday and 7.3°F warmer than the historical average. Accumulated Natural Gas-Weighted Degree Days (GWDDs) through 2:00 PM EDT tally 18.1 GWDDs which is 1.8 GWDDs less than yesterday through the same time and 9.3 GWDDs less than average. This suggests a below-average contribution of temperature to natural gas demand." from http://www.celsiusenergy.net/p/intraday-weather.html
The price you see for natural gas is the front month NYMEX futures contract, which today is January. Natural gas futures are much more thinly traded than oil futures contracts, so a change in the weather forecasts can have a significant impact on the contract. Mild weather is now expected for ten days. Should turn colder than normal on Christmas Eve.
Natural gas in storage is still dangerously low for this time of year and winter is just getting started.