Jacob Ford/Odessa American via AP
- Natural gas prices tumbled lower on Monday and hit a new 21-month low.
- Freezing temperatures are set to hit the south, but the East Coast has had a mild winter.
- New York City has been spared substantial snowfall so far this winter season.
Natural gas prices fell on Monday, extending a string of recent losses to set a fresh 21-month low amid mild winter temperatures in parts of the US.
Prices were hovering near $2.73 per million British thermal units, below a key threshold of $3 broken on January 25. The latest decline adds further downward pressure to prices that are now more than 70% below all-time highs of $10.03 hit in August 2022.
Tepid winter weather on the East Coast has so far crushed demand and sent prices lower, while southern states like Texas continue to experience persistent freezing temperatures. The state is expecting another snow storm this week.
And as temperatures have remained warmer than usual, production has stayed steady, adding to the decline in prices. The key Freeport liquefied natural gas terminal in Texas has also restarted production after a prolonged shutdown.
Even as Russia’s war on Ukraine continues and the prospect of flows from Russian producers remains in flux, inventories in the Northern Hemisphere are looking strong extending into next winter as well.
Meanwhile, New York City has remarkably not yet experienced a major snow storm, marking 326 consecutive days without significant snowfall, according to the Wall Street Journal.