Natural gas tumbles with most ever in storage
NEW YORK — Natural gas prices tumbled nearly 8 percent Thursday after the government reported consumption has dropped so low that the U.S. is now storing more than at any other time on record.
The report was welcome news for homeowners who heat their homes and cook their meals with natural gas. Suppliers already have cut rates in many parts of the country as stockpiles ballooned above the five-year average, and a continued drop in natural gas prices should convince others to cut prices as well.
Natural gas for November delivery lost 37.5 cents to settle at $4.466 per 1,000 cubic feet on the New York Mercantile Exchange.
The Energy Information Administration reported Thursday that underground aquifers and caverns in the lower 48 states stored 3.589 trillion cubic feet of natural gas last week, topping the previous all-time high of 3.545 trillion cubic feet set on Nov. 2, 2007. Government records go back to 1975.
Analyst Steven Schork said supplies have grown so much that the U.S. is nearing its storage capacity for natural gas. If that happens, producers could dump more of it on the open market, dropping prices even more.
But Peter Beutel at Cameron Hanover said prices have dropped so low this summer that they’ll likely spring back as winter approaches.
“We’ll start drawing down those supplies,” Beutel said “especially if it’s cold and the economy starts to pick back up.”
Elsewhere, oil prices ticked higher as the dollar strengthened and traders mulled a mixed bag of economic reports that suggested the country wouldn’t enjoy a swift economic recovery.
Benchmark crude for November delivery added 21 cents to settle at $70.82 on the Nymex. In London, Brent crude lost 12 cents to settle at $69.19 on the ICE Futures exchange.
Reports by the Commerce and Labor departments said that while consumer and construction spending grew in August, the number of people claiming first-time unemployment benefits increased more than expected last week.
Although the Institute for Supply Management’s index of manufacturing activity showed a second straight month of growth in September, the reading was well below what analysts expected.
The mixed economic news helped equities markets start the fourth quarter on a sour note. The Dow Jones industrial average lost about 147 points, and the Standard & Poor’s 500 index gave up 21, down about 2 percent.
At the pump, retail gas prices fell by a penny overnight to a new national average of $2.469 a gallon, according to auto club AAA, Wright Express and Oil Price Information Service. A gallon of regular gas is 13.8 cents cheaper than last month and $1.15 cheaper than the same time last year.
In other Nymex trading, gasoline for November delivery added less than a penny to settle at $1.7579 a gallon, and heating oil lost a half cent to settle at $1.8274 a gallon.
Associated Press writers Pablo Gorondi in Budapest, Hungary and Alex Kennedy in Singapore contributed to this report.
Related News
Natural gas inventory reaches highest level on record; prices fallOctober 1st, 2009 Natural gas stocks rise to highest level everNEW YORK — Natural gas stockpiles rose last week as expected, the government said Thursday. For the week ended Sept.
Japan core consumer price index falls by record 2.4 percent in AugustSeptember 30th, 2009 Japan prices tumble by record in AugustTOKYO — The government says prices in Japan tumbled at a record pace in August amid growing worries about jobs and wages. The country's core consumer price index fell 2.4 percent from a year earlier.
Oil prices tumble below $69 after report reveals weak energy demand, glut of supplySeptember 23rd, 2009 Oil tumbles below $69 per barrel; supplies jumpCrude and gasoline prices fell sharply Wednesday on more evidence of a huge glut in supply, with the economy still damaged by the worst recession since the 1930s. Natural gas, which is seeing the same buildup in supply because of anemic industrial production, continued to spike, however.
Oil prices tumble near $69 after report reveals weak energy demand, glut of supplySeptember 23rd, 2009 Oil dips close to $69 per barrel; supplies jumpCrude and gasoline prices fell sharply Wednesday on more evidence of a huge glut in supply, even if the economy has begun to pull out from the worst recession since the 1930s. Natural gas, which is seeing the same buildup because of anemic industrial production, continued to spike, however.
Oil hangs hear $70 in Asia after big tumble on worries Chinese demand is fadingSeptember 22nd, 2009 Oil hangs near $70 in Asia after big tumbleBANGKOK — Oil prices hung near $70 a barrel Tuesday in Asia after falling steeply overnight amid news that China's crude consumption fell in August. Benchmark crude for October delivery was up 59 cents at $70.30 a barrel by late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange.
Oil near $70 in midday European trading after big tumble on worries over Chinese demandSeptember 22nd, 2009 Oil near $70 after big tumbleVIENNA — Oil prices hung near $70 a barrel Tuesday after falling steeply overnight amid news that China's crude consumption fell in August. Chinese oil demand slid 5.4 percent in August from July, the first month-to-month drop since March, according to Platts, the energy information arm of McGraw-Hill Cos., as the world's second-largest oil consumer reined in oil imports and crude throughput rates at its domestic refineries.
Oil below $70 in Asia after big tumble on worries Chinese demand is fadingSeptember 22nd, 2009 Oil below $70 in Asia after big tumbleBANGKOK — Oil prices wallowed near $70 a barrel Tuesday in Asia after falling steeply overnight amid news that China's crude consumption fell in August. Benchmark crude for October delivery was up 26 cents at $69.97 a barrel by early afternoon Bangkok time in electronic trading on the New York Mercantile Exchange.
Tropical storms and hurricanes are not enough to prop up energy prices; crude below $66August 17th, 2009 Oil prices tumble below $66 per barrelOil prices fell to new lows for the month Monday even as the year's first hurricane threatened grow in size before it heads toward the U.S. coast. Benchmark crude for September delivery tumbled nearly 3 percent, or $1.80, to $65.71 a barrel on the New York Mercantile Exchange.
Shares of major oil companies tumble as crude prices decline with slumping consumer demandAugust 17th, 2009 Shares of oil majors tumble with crude pricesNEW YORK — Shares of major oil companies fell sharply on Monday, as crude oil prices tumbled amid new reports that signaled continued consumer spending restraint. Benchmark crude for September delivery at one point fell as much as 3 percent to $65.23 a barrel on the New York Mercantile Exchange.
St. Mary Land & Exploration reports 2nd-qtr loss on sinking prices of oil and gasAugust 4th, 2009 St. Mary Land & Exploration reports 2Q lossDENVER — St. Mary Land & Exploration Co.
Norway's StatoilHydro posts zero profit in 2Q, cites lower crude and gas pricesAugust 4th, 2009 Norway's StatoilHydro 2Q profit falls to zeroOSLO — Norwegian oil company StatoilHydro ASA on Tuesday saw its profits vanish in the second quarter and cited lower crude and gas prices. The state-controlled oil concern said its net profit for April through June period plummeted to zero kroner from 18.9 billion kroner ($3.1 billion) in the same time last year, when oil prices soared.
Wheat, corn futures drop, soybeans jump on CBOT; beef prices mixed, pork futures tumbleJuly 28th, 2009 Agriculture futures mixed, pork prices tumbleCHICAGO — Agriculture futures traded mixed Tuesday on the Chicago Board of Trade. September corn shed 1.25 cents to $3.21 a bushel, while September wheat lost 3 cents to $5.175 a bushel.
Small moves in dollar give metals, grains little direction; natural gas prices tumbleJune 18th, 2009 Metals, grains hold steady while natural gas fallsNEW YORK — Prices for metals and agriculture futures were little changed Thursday, while natural gas prices dropped sharply, interrupting a three-week rally. Natural gas prices fell after the government reported a huge build in supplies — fresh evidence that the industrial sector is still hurting from the recession.
Italy's largest energy company Eni says 1Q profit down 43 percent on lower oil prices, demandApril 24th, 2009 Italy's Eni says 1Q net profit down 43 percentMILAN — Italy's largest energy company, Eni SpA, says first quarter earnings dropped 43 percent due to the sharp reduction in oil prices and European demand for gas. Eni reported Friday that net profit in the first quarter of the year was euro1.9 billion ($2.48 billion) compared with euro3.32 billion a year ago.
Oil prices tumble as Americans cut spendingFebruary 2nd, 2009 NEW YORK - Oil prices tumbled Monday as Americans cut spending amid grim economic environment. According to a US government report, consumer spending fell for a record sixth straight month in December as recession-battered households worried about increasing number of layoffs reduced purchases.
Loading ...