Natural gas drops below $2.00
By Brandi Cowen
As the chart to right may still show, natural gas prices and futures continue to slide. In fact, natural gas futures fell below $2 for the first time since January 2002, as weak demand and robust production have driven prices down 55% over the past year.
According to a report in the Finacial Post, prices are not expected to rise any time soon.
“Is it the first day of natural gas prices falling below $2? I don’t know, it might pop back above that level, but we may be seeing the sub-$2 prices for quite some time over the summer, and it could fall to $1.70-$1.75 on NYMEX,” said Martin King, an analyst at First Energy Capital.
Natural gas prices have declined 33% alone year-to-date as production continues unabated across North America on the back of shale gas and associated gas from oil drilling. Record storage surpluses in Canada and the United States — unusual for this time of the year — have not helped prices either.
Pricing is expected to firm up in 2013, making today a good time for energy-intensive sectors to take some of those savings and invest in energy efficiency projects.