Traders Anticipate Prolonged Low Price for Gas
Friday, April 27, 2012
The U.S. Energy Information Administration (EIA) has reported that commodity traders on the New York Mercantile Exchange (Nymex) expect natural gas prices to remain low the next 12 months.
EIA said, “Prices for natural gas for contract months between May 2012 and April 2013 have fallen significantly over the past year. At the end of April 2011, prices for May 2012 (now the near-month contract) were trading close to $5 per MMBtu, but are currently near $2 per MMBtu.”
The federal agency said that in the last month, the 12-month futures prices have fallen about 30 cents across the board.
“The continued low prices are the result of a relatively warm winter and abundant production and storage,” EIA said.
“While the near-month contract recently rose above $2 per MMBtu, earlier this month the near-month contract prices hit 10-year lows. The increase in prices for contract months beginning in the fall of 2013 reflects anticipated higher demand for the winter heating season.”
For more information: www.eia.gov