Warm winter weather drives down natural gas prices
Tuesday, December 10, 2019
Natural gas prices dropped Monday amid concerns that demand for heating fuel will suffer due to unusually warm winter weather and be unable to counter growing output, according to The Wall Street Journal.
Temperatures are expected to hover near normal or warmer than normal for this time of year for the next couple of weeks, according to the National Oceanic Atmospheric Administration. Meanwhile, the natural gas supply is climbing, impacting already low prices.
Mild winter weather and ongoing production growth have led to predictions that the natural gas market will be oversupplied and push prices below $2 per million British thermal units by the end of winter.
Learn more: The Wall Street Journal > Warm winter weather prompts lower natural gas price forecasts
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Depending on the company, royalty payments can arrive monthly or quarterly.
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