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The price of natural gas briefly dipped below $3 Friday morning, with a warm December and plentiful supplies behind the decline. It was the first time natural gas has traded below that level since Sept. 24, 2012.
Prices rebounded slightly shortly after, with natural gas for January delivery trading at $3.037. (Get the latest quote here.)
Natural gas prices are down 30 percent in just over a month and homeowners could enjoy lower electricity prices and heating bills in the coming months. The year's peak was $6.40 on Feb. 20.
Natural gas is used by half of the nation's households for heating and to generate 26 percent of the nation's electricity.
Natural gas prices rose during a frigid November. But December warmed up, and temperatures for the rest of the winter are expected to be close to normal. That could keep prices low through the spring, analysts expect.
On Tuesday, Natural gas rose slightly to $3.15 per 1,000 cubic feet, down from nearly $4.50 in late November.
—The Associated Press contributed to this report.