Natural gas futures fall in light trading Friday

Standard futures for natural gas fell into relaxed trading following the Thanksgiving holiday holiday.
The benchmark tariff of natural gas, set by the next-month futures contract for delivery in Louisiana’s Henry Hub, dropped by 8. 7 pennies to $2. 212 for each million British thermal device Friday.
The price of natural gas offers recovered from late-October levels of near $2 for every million British Thermal product, but hasn’t been able to recuperate significantly despite the beginning of the cooler winter season, when many in order to the fuel for warming and electricity.
Part of the cause that prices remain therefore depressed is a glut associated with storage that the industry accumulated this summer. Natural gas stores are usually built up in the summer and then attracted down during the winter. Come early july, strong production meant the tucked away enough gas to exert storage figures above the record-setting 4 trillion cubic feet.
The extra-large pillow of natural gas has kept prices low. And those affordable prices fell again after meteorologists said that a strong El Niño was likely to mean a gentle winter - and less requirement for natural gas heating - throughout a large swath of the nation.
“As noted by the substantial storage build in 2015, second only to the document build in 2014, all of us continue to stand by our see that the market is structurally oversupplied, ” analysts at monetary services firm Raymond Adam said in a note in order to clients Wednesday.
There are several shops for natural gas that could increase prices in the years to come. Enormous infrastructure projects, mostly across the Gulf Coast, are expected to assist ease the glut through liquefying natural gas and delivery it abroad. New sewerlines are planned to bring a few of the excess U. S. fuel south into Mexico.
However relief from those projects is not expected until they’re finished far into the future. For now, gas prices are being supported by energy plants that have switched towards the fuel as a cheaper substitute for burning coal.
That’s assisted to keep prices higher than $2 per million British energy unit recently, but it certainly is not enough to significantly enhance prices because there’s a restricted need and power power generators will simply switch back to fossil fuel if gas prices increase too much.
“We expect propane prices to remain depressed through the entire end of this year as well as 2016, ” Raymond David analysts wrote.

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