Natural gas prices
NYMEX April natural gas (DGAZ) (UNG) (BOIL) futures contracts rose 1% and closed at $2.78 per MMBtu (million British thermal units) on February 24, 2017. Broader markets like the S&P 500 (SPY) (SPX-INDEX) also rose 0.1% on February 24, 2017.
Natural gas prices recovered from a three-month low due the following factors:
- expectation of cold weather
- better-than-expected fall in natural gas inventories
- short covering
US natural gas highs in the last 12 months
Prices rose due to:
- cold weather forecasts
- fall in US natural gas inventories
- slowing natural gas production
As of February 24, 2017, prices were 30.3% below their 12-month highs. Prices fell due to warmer-than-normal weather for this time of the year. For more on the weather, read the next part of the series.
US natural gas lows in the last 12 months
NYMEX natural gas prices hit a 17-year low of $1.64 on March 3, 2016, due to mild weather, weak demand, strong supplies, and high inventories.
Read How Could Donald Trump Impact the US Energy Market? for more on bearish drivers in 2017. As of February 24, 2017, prices have risen 70% from their lows in the last 12 months.
What’s in this series?
In this series, we’ll look at natural gas inventories, US natural gas rig counts, production, consumption, and some natural gas price forecasts.
We’ll start with US natural gas prices during the early morning hours on February 25, 2017.