2008traveler

Is Natural Gas Down for the Count?

Luca: The huge gain last winter was due to a couple of factors that all had to do with the weather and starting from a depressed price. One was we did not have any hurricanes which allowed supply building without interruption. Two the weather man predicted a warmer than normal winter. This prediction actually held through December putting more downward pressure on prices. My climate reports differed. They predicted a warm beginning and end of winter but with a bitter cold middle of winter. Kind of a head fake. If you averaged that warm-cold-warm scenario you would see a warmer average temperature. The first two parts of my weather forecast held true catching a lot of people by surprise when it got really cold causing a price spike. The last half of my weather forecast did not hold true and it stayed cold until the beginning of April depleting supplies. That is why you saw a 25% rise.