Natural Gas Prices Are Tanking

Natural gas futures dropped as much as 9 per cent today after a meteorology forecasting group said the country would see above-normal temperatures through Jan. 11, according to Bloomberg’s Christine Buurma.

Commodity Weather Group LLC in Bethesda, Maryland added the low in New York on Jan. 9 may be 38 degrees Fahrenheit, 11 higher than usual, Buurma said.

It was the second consecutive price collapse for the commodity. Yesterday contracts fell nearly $0.25 following a 900-contract order on the NYMEX, she reported.

Futures are way down from fall 2012 highs of nearly $4, although there is usually a decline at the beginning of the year as orders for winter supplies tail off. Here’s the chart going back to September:

natural gas price chart

Photo: ForExPros

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at