• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 21 hours Cheaper prices due to renewables - forget it
  • 18 hours e-cars not selling
  • 2 days If hydrogen is the answer, you're asking the wrong question
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 2 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 4 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.


The leading economics blog online covering financial issues, geopolitics and trading.

More Info

Premium Content

Warmer Weather Sends Natural Gas Prices Plunging

  • After the polar vortex that ended last week, natural gas prices are plunging this week as a result of warmer weather in both the U.S. and Europe.
  • A weaker heating demand outlook has sent U.S. Natural Gas prices down nearly 9% to $4.062 per million British thermal units on the New York Mercantile Exchange in early Tuesday trading.
  • EU NatGas storage increased last week. 

U.S. and European natural gas prices are sliding as warmer weather reduces demand for the heating fuel, and storage levels remain high. Risks of a global energy crisis are diminishing for now -- well -- that's until the next cold blast strikes. 

The polar vortex that sent much of the Lower 48 into a deep freeze at the end of 2022 ended last week. Now, much of the US will see warmer-than-normal temperatures through mid-Jan

The National Oceanic and Atmospheric Administration's latest 6-10 Day Temperature Outlook shows that nearly all Lower 48 will experience above-average weather. 

NOAA's 8-14 Day Temperature Outlook suggests the same. 

Weather data via Bloomberg shows Lower 48 temperatures are expected to remain above a 30-year average through mid-month. 

And this will reduce heating demand. 

US NatGas storage entered into a drawing period in mid-Nov. and has been sliding since.  

A weaker heating demand outlook has sent US NatGas prices down nearly 9% to $4.062 per million British thermal units on the New York Mercantile Exchange in early Tuesday trading. Prices are back to levels not seen since early February 2022. 

Across the Atlantic, EU NatGas touched the lowest levels since the start of the Ukraine war. 

"The risk of extreme market tightness that people were worried about before the winter started seems low now," BloombergNEF's Abhishek Rohatgi wrote. 

Warmer weather in Europe has eased concerns about blackouts and rationing as stockpiles increase:

In fact, Europe has been able to add more gas into storage in the last few days amid a mix of curbed heating needs and typically lower consumption during the holiday season. -Bloomberg

EU NatGas storage increased last week. 


Temperatures across Central EU are expected to hold above seasonal levels through at least the mid-month. 

Sign of relief worldwide: NatGas prices slide in the US, EU, and Asia. 

We noted days ago the risks of a collapsing polar vortex in the Arctic could send parts of the EU into a chill later this month. And it's only a matter of time before cold weather returns to the US. 

By Zerohedge.com

More Top Reads from Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment
  • George Doolittle on January 03 2023 said:
    So much rain creating a massive glut of electrical output in the USA East of the Mississippi River would appear. Is the US Federal Government back to driving the futures higher now or trying to drive them lower?

    With all the trillions now hither and yon who knows what to believe.

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News