Commodity Blog

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Natural Gas — Another Loser on Energy Market

January 28, 2015 at 17:10 by Vladimir Vyun

The energy market did not perform particularly well during the current trading session as not only crude oil fell but natural gas as well. While futures for gas jumped 3 percent yesterday as traders were bracing for blizzard in the US Northeast, prices dropped back after the event has happened.

There can be several explanations for the drop. One of them is the usual strategy “buy the rumor, sell the fact”. Another is the update of weather forecasts. Now forecasters predict that temperatures will rise closer to the norm in the second half of February. As a result, speculators bet on lower demand for gas that is used in heating.

February contract for delivery of natural gas sank 3.29 percent to $2.88 per million British thermal units as of 17:09 GMT on NYMEX today.

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