Natty Gas Nuances: Decoding the Dips, Spikes, and In-Betweens
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This is your Daily Natural Gas Price Tracker with Vanessa Clark podcast.
Hey there and welcome back to the Daily Natural Gas Price Tracker. I am your host, Vanessa Clark, and today we are talking about what is happening right now in the natural gas market and what it could mean for your wallet and your energy decisions.
As of today, Trading Economics reports that United States natural gas is trading right around 4 dollars and 4 cents per million British thermal units. That is up slightly, less than one percent from yesterday, but still down more than eleven percent over the past month. At the same time, prices are almost thirteen percent higher than they were a year ago, so we are still well above last winter’s levels.
So what is driving today’s natural gas price. Trading Economics notes that United States natural gas futures have been rebounding from recent seven week lows as traders step in after the selloff and as liquefied natural gas exports stay strong. Average gas deliveries to the major liquefied natural gas export facilities are running at record like levels, which keeps export demand firm even while prices have been pulling back.
On the other side of the equation, weather and supply are acting as a brake on a bigger rally. Forecasts across much of the United States are calling for above normal temperatures heading into the Christmas period. Warmer weather means less heating demand, and that takes some of the urgency out of buying natural gas at any price. At the same time, Trading Economics highlights that United States natural gas production is holding near record highs and storage remains comfortable, with inventories still above the five year average.
So what can you do with this information if you are an everyday listener, not a full time trader. A few quick takeaways. First, if you are a homeowner or renter thinking about your winter heating bill, current natural gas prices near four dollars suggest you should still budget as if prices are volatile. We are well below the recent three year high from early December, but prices are still elevated versus last year, and a sudden cold snap could send them higher again.
Second, if you follow energy stocks or natural gas exchange traded funds, remember that this market is very weather driven right now. NatGasWeather and other forecasters are emphasizing that warmer than expected conditions have knocked prices off their highs, and any shift to colder patterns, especially in January, could quickly tighten the market. That means short term moves can be sharp in both directions.
Third, if you are a small business owner or facility manager, this is a good moment to review your energy contracts. With prices pulling back from the recent spike but still supported by strong liquefied natural gas exports, you might want to talk with your supplier about locking in part of your winter or even next year’s usage. Having at least a portion of your demand hedged can smooth out the impact of sudden price swings.
Looking ahead, Trading Economics’ models suggest natural gas could edge a bit higher to around four dollars and sixteen cents by the end of this quarter and potentially trade above five dollars over the next twelve months. Forecasts are never guaranteed, but they are a reminder that even after this pullback, the natural gas outlook stays tight enough that higher prices are still on the table.
That is it for today’s episode of the Daily Natural Gas Price Tracker with Vanessa Clark. Thanks for hanging out with me and staying on top of natural gas prices, natural gas news, and what is driving the energy market. Be sure to subscribe, share this with a friend who watches their energy costs, and tune in next time for your next daily natural gas price update.
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