Natural gas futures plummeted by nearly 2 per cent in the domestic market on Friday, crashing to the lowest level in seven weeks overseas as investors and speculators shunned the energy commodity as forecasts for above normal temperatures later in February across the US threatened to curb the demand for the heating fuel in the world’s biggest gas consuming nation. About 49 per cent of US households use natural gas for heating purposes.
November to March is the peak US gas heating season.
Meanwhile, US storage levels remain more than adequate as total supplies are 20 per cent higher than levels at this time a year ago and 19 per cent above the five-year average for this time of year.
Natural gas prices fell as concerns about an up tick in production and forecasts of milder weather pressured the market as estimated by Epic Research.
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