Update: Natural gas prices have settled at their lowest level since 2002.
Original: Despite the across the board rally in commodities, natural gas for February 2012 delivery is off a staggering 7.26%. At $2.46 a million British thermal units (Btu), well off its 52-week high of $5.28 a million Btu.
Mild weather patterns across the U.S. this year have restricted natural gas use, stemming from lower heating demand. Moreover, the EIA natural gas report released last week showed that production totaled 3.377 trillion cubic feet, and was 17% higher than the 5-year average. A combination of high production and lower demand has contributed to a fall in natural gas futures.
Natural gas futures are at their lowest in nearly a decade. Here’s a look at how some nat gas stocks are shaping up today, and a chart showing the sharp decline in nat gas futures since mid-2008:
- Chesapeake Energy: -1.17%
- Cabot Oil & Gas Corp: -2.20%
- Southwestern Energy: -1.39%
[credit provider=”Fin Viz”]