Following a relatively balmy Christmas holiday, natural gas prices sank to the lowest level in in two years. Natgas futures on the New York Mercantile exchange closed at just over $3 per British thermal unit Friday, down nearly 13 percent for the holiday-shortened week.
"It has so much to do with weather, so much to do with supply," said Peter Amandio, Chicago Energies president, who trades nautral gas futures at the Nymex. "It looks as though there's going to be a lot of pressure on the market."
The mild start to this winter has seen lower heating demand, leaving natural stockpiles at higher levels than this time last year, and prices down more than 50 percent from a peak of $6.40 per Btu when the so-called polar vortex resulted in a prolonged cold snap for much of the country.