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.
Bush's fault!!!
SWEET!!!!!
An oil rig in China's Bohai Sea in a file photo. Oil extended losses for the seventh consecutive session on Tuesday, retreating to under $64 a barrel after Iran sounded a softer note on its atomic program and OPEC agreed to keep production steady for now. (China Newsphoto/Reuters)
I heard Karl Rove has the natural gas and gasoline valves installed right next to his weather machine, down in the basement of the White House.
"Rove, you magnificent bastard!"
That must be some control room. ;-)
I just spent three grand installing a brand new 65,000 btu Vermont Castings wood burner in my old fireplace too thumb my nose at the gas co. and it's now the lowest in 2 years GRRRRR.
At least I didn't spend 10 grand on a home wind turbine.
Darth Cheney's Natural Resource Manipulation Machine strikes again! Way to go! (cue heavy breath sounds... dum dum dum dum de dum dum de dum...)
SWEET!!!!!
I wonder how they stopped all the hurricanes this year?
THat is a FREeMason secret, perhaps. :-}
Does this mean that when winter is here heating homes will be cheaper than last year? Or at least cheaper than gasoline in the Pacific Northwest where consumers are still paying over $3 per gallon?
Indeed today's modern drill rigs and production platforms are fully state-of-the-art in terms of computerization, etc - looking much like the flight deck of a fictional starship in the movies
"I just spent three grand installing a brand new 65,000 btu Vermont Castings wood burner in my old fireplace too thumb my nose at the gas co. and it's now the lowest in 2 years GRRRRR."
Vermont Castings make beautiful, energy efficient stoves. You did not waste one penny. It was a smart investment.
Exclusive photo of Nazi Pelosi and the rest of your favorite democrats reaction to this news!
Exclusive photo of Nazi Pelosi and the rest of your favorite democrats reaction to this news!
Rove's hurricane generator is offline, doing a software upgrade to include tornados, earthquakes, floods and volcanoes.
Called Schumer's office and asked if he was in mourning for the drop in energy costs.
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