Posted on 09/14/2006 12:59:51 PM PDT by NormsRevenge
WASHINGTON - Natural gas futures fell to a two-year low on Thursday after U.S. government data showed record levels of fuel at underground storage facilities.
Homeowners that depend on natural gas for heat should see lower bills this winter, industry officials said.
"It looks much better than last year for natural gas consumers," said Mark Stultz, a spokesman for the Natural Gas Supply Association.
Traders' receding fears about possible supply disruptions during this year's Atlantic hurricane season also helped pushed natural gas futures lower, and oil prices fell in sympathy.
October natural gas futures fell 56 cents to $4.89 per 1,000 cubic feet on the New York Mercantile Exchange. The last time front-month natural gas futures settled below $5 was Sept. 16, 2004.
ABN Amro broker Gerry Saccente said natural gas prices could drop as low as $4.50.
But Saccente cautioned that prices were likely to level off at the start of autumn, when traders typically begin to fret over wintertime demand. "The psychology will change," he said.
Energy Department data showed U.S. inventories of natural gas climbing last week to 3.08 trillion cubic feet. That is 12.4 percent above the five-year average for this time of year — and higher than it has ever been in mid-September, according to Stultz.
Stultz said his association is anticipating a record 3.5 trillion cubic feet of natural gas in storage by Nov. 1, the unofficial start of the home-heating season.
Some analysts have suggested the U.S. may actually run out of storage capacity, forcing producers to cap wells. "People are watching the situation closely," Stultz said.
Natural gas supplies were already ample heading into the summer because a warm winter last year sapped home-heating demand and because most of the Gulf of Mexico output that was lost during last year's hurricanes had been restored.
And with the exception of a heat wave or two, summertime demand for gas-fired electricity did not make a significant dent in that surplus. "The hot weather fell apart a month ago," Saccente said.
Nymex oil futures, which have declined more than 18 percent since a mid-summer peak of $78.40, fell 22 cents to $63.75 a barrel.
Falling oil prices are not uncommon at this time of year, when gasoline consumption traditionally tapers off and heating oil demand has yet to ramp up. The drop has been magnified by a perception among oil traders that threats to supplies — ranging from Atlantic hurricanes to Middle East politics — have eased.
"Homeowners that depend on natural gas for heat should see lower bills this winter"
Thank goodness for this good news. Maybe I will make it to spring after all.
I remember when"W"was taken to"the woodshed"by The DemonRats(for not making a deal with his Saudi buddies before the 2004 election.Then,(when prices declined),he was taken BACK to"the woodshed".If you are SH*T(out of luck),well......................
Haha excellent...did you make that or did you steal it from someone else??? I had seen that earlier but was afraid to post it and steal someone's thunder...
NG might be too low to allow building the Alaska NG Pipeline now.
I demand an investigation!
Got a link? I am always interested in alternative heat sources.
Read laer.
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