The Prices of Natural Gas Continue to Drop Settling at Year’s Lowest Figures
The New York Mercantile Exchange reported today that the prices of natural gas have dropped even further down the economic totem pole, and have finally settled at its all time lowest position for the year that has proven to be less than profitable for the fuel.
Future numbers for September are already predicting that the negative trend will continue into the fall, making way for a 5.4 cent drop will soon take place, rendering the product’s prices at $3.817 for every 1,000 cubic feet. Today’s records however have been even lower, with the fuel posting a reduced price of $3.794 for the mass.
The coming month is usually a tough period for natural gas, as people tend to turn off their AC systems, while still not turning on the heat in their homes, prompting severe drops in user consumption. The plummeting costs of the fuel however are causing a similar drop to be sustained in the real estate and business worlds as well, with both home and venture costs falling.
Gas pump price postings are equally grim at the moment, as the product has seen more than two weeks’ worth of decreases, and the letup does not seem to be in the works for some time. And despite the fact that as colder temperatures of winter unravel, people will eventually start using much more heat; staggeringly excessive amounts of stockpiles of the fuels, and the emergence of shale gas, natural gas’ main industry competitor will likely cause the product to continue its already painfully prolonged downturn.
Many of the nation’s top natural gas suppliers have performed stringent cutback of its production rates in order to try and weather the dry spell for the market. However, the quick emergence of shale gas may mean that their deadline for resuming production will have to be pushed back several times over, if the industry wants to survive the quarter, let alone flourish in it.
The matters are not helped by the fact that crude oil, natural gas’ companion conventional fuel seems to have already begun its slow and what looks to be a steady rise back up the financial ranks. The figures for the fuel have returned positive, marking the beginning of a much awaited upswing. That, coupled with the fact that shale gas has been breathing down natural gas’ neck make for a grim prediction for the product.