Natural Gas Price Dives After Storm Misses New York

Energy

Published: January 29, 2015 11:00 am

Last Updated: April 28, 2020 2:21 am

The U.S. Energy Information Administration (EIA) reported Thursday morning that U.S. natural gas stocks decreased by 94 billion cubic feet for the week ending January 23. The five-year average draw is about 170 billion cubic feet, and during the same period last year the draw was 100 billion cubic feet.

Natural gas futures for February delivery traded up about 0.3% in advance of the EIA’s report, at around $2.85 per million BTUs, and fell more than 10 cents immediately following the report. Natural gas futures have tumbled from a high of around $2.98 per million BTUs since last week. The 52-week low for natural gas futures is $2.76.

When the expected snow and cold dodged New York City earlier this week, natural gas prices that had been trading at around $2.96 for March delivery dropped 10 cents and fell below $2.80 on Wednesday before making a bit of a comeback early Thursday. Natural gas prices are not expected to push higher going into next week as warmer weather is expected across most of the United States, with only a short blast of cold Arctic air due along the northern tier and in the Northeast.

Stockpiles are about 14.6% above their levels of a year ago and about 3% below the five-year average. The relatively milder weather so far in the heating season has curtailed stockpile drawdowns, compared with last year’s much colder weather.

ALSO READ: 5 States Still Have High Gas Prices

The EIA reported that U.S. working stocks of natural gas totaled 2.54 trillion cubic feet, about 79 billion cubic feet below the five-year average of 2.62 trillion cubic feet and 324 billion cubic feet above last year’s total for the same period. Working gas in storage totaled 2.22 trillion cubic feet for the same period a year ago.

Here is how stocks of the largest U.S. natural gas producers reacted to this latest report:

Exxon Mobil Corp. (NYSE: XOM), the country’s largest producer of natural gas, was down about 1.7%, at $86.49 in a 52-week range of $86.15 to $104.76. The low was posted Thursday.

Chesapeake Energy Corp. (NYSE: CHK) was down about 2.3%, at $18.69 in a 52-week range of $16.41 to $29.92.

EOG Resources Inc. (NYSE: EOG) was down about 1.2% to $87.04. The 52-week range is $80.75 to $118.89.

Also, the United States Natural Gas ETF (NYSEMKT: UNG) was down about 4.5%, at $13.90 in a 52-week range of $14.90 to $27.89. The low was posted Thursday.

ALSO READ: States With the Highest (and Lowest) Gas Taxes

100 Million Americans Are Missing This Crucial Retirement Tool

The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.

Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.

A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.

Click here to learn how to get a quote in just a few minutes.