Natural gas prices in the United States have fallen to their lowest level in almost 30 years due to the abnormally warm winter in the country. This was reported by Finance Times.
The newspaper writes that according to meteorologists, this winter will be the warmest since records began in 1950.
Low demand for heating fuels due to mild weather has coincided with record gas production in the United States. Daily production reached 105 billion cubic meters in December. ft.
Contracts for March gas supplies on the Henry Hub exchange rose to $1.61 per 1 million Btu on Friday. That’s only slightly higher than $1.58 the day before, the lowest price since 1995.
Ice cover on the Great Lakes is at an all-time low for this time of year, according to the National Oceanic and Atmospheric Administration.
Analysts at Commodity Weather Group predict winter will be 2023-2024. It will be 3% warmer than the previous record set in 2015-2016. This has led to a sharp decline in demand for heating oil, the publication notes.
Meanwhile, U.S. gas production is breaking records amid the shale gas revolution. It increased to 105 billion cubic meters in December. S&P Global Commodity Insights points out the amount of feet per day.
The oversupply has caused U.S. gas inventories to rise 11% from a year ago. This situation forces producers to restrict well drilling. Comstock Resources and Antero Resources have already announced that the rig count will be reduced.
Before that in France in the name Lift Russia’s sanctions to bring cheap gas back into the country.
The cost of gas in the world before stabilized.