Natural Gas Falls to 14-Month Low in Response to Inventory Report
Natural gas futures dropped to its lowest level on Thursday in more than 14 months during trading on the New York Mercantile Exchange, after release of a government report which showed a lesser-than-forecast supply decline.
While analysts anticipated a drop of 67 billion cubic feet, the report revealed that stockpiles had only dropped 64 billion cubic feet.
Natural gas for January delivery briefly touched $5.961 — the lowest level since trading at $5.916 in Sept. 07– but later regained some of its losses. As of 1:55 p.m. in New York, it was once again trading above the 6 dollar level at $6.013, down 33 cents on the day.
The decline caused by the slumping U.S. economy in such industries as steel, have cut back on the demand for natural gas. Industrial and commercial users account for about 42 percent of natural gas consumption in the U.S.
About the Author
Samuel R. Avro is the founder and Editor-In-Chief of Consumer Energy Report. Sam believes that a lot more can be done about the energy problem the world is currently facing. First and foremost, the public must be made aware of all the available options. He firmly believes that the most realistic method of achieving this on a large-scale basis is to report the news for the public to read and discuss. When he isn't too busy covering the energy industry, as a New York area resident, Sam is always willing to take part in a discussion about his World Champion New York Yankees. Motto: Dissemination of information is the key!
