Natural Gas Prices Hit Record Low

The daily natural gas price dropped to the lowest level in more than 20 years on June 16, settling at $1.38 per million British thermal units.

SEATTLE (Oil Monster): Natural gas prices hit a record low during the first half of the year as the coronavirus pandemic and a mild winter reduced demand.

The average monthly price for U.S. benchmark natural gas was $1.81 per million British thermal units during the first six months of the year. The average monthly price reached a low of $1.63 per million British thermal units in June, the lowest price, adjusted for inflation, since at least 1989, according to the U.S. Energy Information Administration.

The daily natural gas price dropped to the lowest level in more than 20 years on June 16, settling at $1.38 per million British thermal units, according to Natural Gas Intelligence. U.S. gas prices have been falling since the shale revolution, which turned the nation into the world's biggest producer and net exporter of gas.

Warmer-than-normal temperatures in January through March resulted in less natural gas demand for space heating. Starting in March, the economic fallout from the pandemic further lowered demand as businesses temporarily closed and exports of liquified natural gas slowed.

The EIA expects natural gas prices to remain low in the coming months, averaging $2.05 per million British thermal units in the second half of the year, before rising again toward the end of the year as the winter heating season approaches.

The agency forecasts U.S. natural gas production to fall by 3 percent to an average of 89.2 billion cubic feet per day in 2020, down from 92.2 billion cubic feet per day in 2019.

Courtesy: www.houstonchronicle.com