Weather takes the heat out of gas prices
Last week, natural gas prices sank by 12%, the worst weekly loss in a year, on forecasts of unusually warm weather.
US natural gas prices jumped to a two-year high of almost $4 per million British thermal units (mbtu) late last month. But the rally didn't last long. Last week prices sank by 12%, the worst weekly loss in a year, on forecasts of unusually warm weather. Around 50% of US homes use gas for heating, so winter weather is the main driver of demand.
Last month, freezing conditions meant that 600 billion cubic feet (bcf) of gas were taken out of storage in the three weeks in December, breaking a 20-year record, says Timothy Puko in Barron's. At this stage in the season, 400 bcf would be a typical figure for that timeframe.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
‘Sandwich generation’ carers losing £6,000 a year to support elderly relativesMiddle-aged adults are often caught between caring for children or grandchildren and their elderly parents, leaving them taking time out of the workforce and facing a huge hit to wages while they are still trying to save for retirement. We look at the true cost of caring.
-
Ground rents to be capped at £250 a year – what does it mean for you?The government has published draft legislation which would see ground rents capped at £250 per year for leaseholders. We examine what it means for homeowners and the housing market.
