Natural gas just crashed to a 17-year low

Natural gas prices fell to a 17-year low on Thursday.

The drop to that level came after the Energy Information Administration’s weekly report on inventories, which showed that inventories fell by 117 billion cubic feet (Bcf) last week from the prior period.

But compared to this time last year, gas stockpiles are 615 Bcf higher, and 577 Bcf more than the five-year average.

So clearly, there’s been a swell in inventories, similar to what we’ve seen with crude oil, that has helped to push prices to this new low.

There’s also been pressure from higher-than-normal temperatures, which has reduced demand for heating gas.

Natural gas futures for April delivery fell 4% to as low as $1.748.

Here’s the commodity’s decline, going back five years:

NOW WATCH: NASA’s Spirit Mars rover found mysterious growths on Mars that could be the biggest discovery in science

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.