%NaturalGas prices have declined to their lowest level in more than three years as the U.S. experiences its warmest winter on record.
The price of natural gas has now dropped for seven consecutive trading sessions, falling to its lowest level in three and a half years, as the U.S. sees above-normal temperatures for this time of year.
The unseasonably warm weather across America has led to weak heating demand and led to high inventories of natural gas supplies.
Weather services are forecasting above-average temperatures for most of the U.S. for the remainder of February, a situation that is likely to continue putting downward pressure on natural gas prices.
The U.S. Climate Prediction Center has said there is a 55% chance that the current El Nino weather pattern will remain strong through March, keeping temperatures above average.
Natural gas inventories in the U.S. are up 9.2% year-to-date compared to the same time frame in 2023, according to industry data.
Natural gas inventories in America are also 10.6% above their five-year seasonal average, signaling excess natural gas supply.
The price of natural gas in the U.S. is currently at $1.56 U.S. per million BTUs, down 35% since the start of the year.