Warm December forecast weighs on Natural Gas

marketsforu

The threat of unusually mild weather in December has put extra pressure on an already beleaguered Natural Gas market. Some of the largest gas consuming regions in the US are expecting un-seasonally mild temperatures towards the end of the month, causing a lack of demand for Nat Gas. The high in Manhattan on November 27th for example is forecast to be 14C, 8C above normal. 

The market has been in a downtrend for two years and is currently trading around levels last seen in 2011. Gas prices have tumbled 6.3 percent so far this week, heading for the biggest weekly loss since May, after a government report on Thursday showed stockpiles soared to an all-time high of 4 trillion cubic feet.