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The Natural Gas Price Plunge Isn’t Over Yet | OilPrice.com

Natural gas prices started the winter season with a bang, but could end it with a whimper.

Henry Hub natural gas prices spiked last November to multi-year highs, nearing $5/MMBtu. The extraordinary drawdown in inventories left the U.S. with the smallest cushion of gas supplies in over 15 years. A cold snap threatened to push gas supplies to dangerously low levels, and eyeing that thin margin, prices jumped and volatility spiked.

The surge in prices was brief, however. Winter got off to a mild start, and demand was relatively muted as well. The record-setting cold at the end of January saw demand spike once again, but the market barely budged. Everyone knew that the Polar Vortex, though intense, was only going to be around for a limited period of time.

A massive upswing in temperatures occurred at the start of this month, with much of the country thawing out. Now, although we have a few weeks left of the high-demand winter season, the end is within sight.

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The Natural Gas Price Plunge Isn’t Over Yet | OilPrice.com.