The boom in natural gas production has created steady, above average supplies of natural gas, sending prices south.
The government reported gas inventories were up 1.4 percent by a net gain of 42 billion cubic feet last week to 2.479 trillion cubic feet, levels that are over 60 percent higher than the five-year average.
The upsurge in supply induced a dramatic downturn in prices, falling as low as $2.08 late Thursday morning in New York.
The good news is that the surplus in supplies, combined with the mild weather this past winter, will cut electric bills for a good number of U.S. homeowners.
Analysts expect the pleasant spring weather to continue over the next few months, which will further drive down prices.
Meanwhile, benchmark crude was up $1.84 to $103.30 a barrel while Brent crude rose 78 cents to $123.12 a barrel.
The current national average of $3.936 per gallon of gasoline is the highest it’s ever been for this time of year, with analysts anticipating it could continue to rise to an unprecedented $4.35 a gallon by the end of this month.
That’s all for now,
Stephanie
Natural Gas Prices Slump
Written By Brian Hicks
Posted April 11, 2012
