According to the reports, what it seems is that the price of natural gases has hit the most inexpensive rate ever since the last lowest hit in the year 2016. Based on reports and through analysts, the conclusion is likely that the demand and the supply lead to further loss.
Earlier, in the first week of February on 10, natural gas made a touchdown at worth $1.766 for every million thermal units in British. According to a market data analyst, Dow Jones suggests that this is the lowest hit ever since March 2016.
Along with that, on Wednesday, natural gas prices, have hit the level of $1.844. However, that resulted in having a loss of 16% per year to date.
The head of the company IDB bank in the Global Management team, Gregory Leo, claims that even though natural gases are cheaper comparing to what it was before, there’s no bargain for demand and supply.
FactSet Data, on the other hand, claims that future pictures of natural gas have hit the level of worth $3.722 in the previous year. Gregory Leo also mentioned that the current price, which is $1.80, will appear to be expensive in the future.
Ther are certain factors that triggered the fall in prices, such as warm temperature, supplies getting increased and low rate of consumption.
Based on reports of atmospheric administration of the United States, January was known to be the warmest month in terms of temperature as per the records. Co-editor of Seven reports, Tyler Richey mentioned that bets were on the temperature is much colder than what it is on average during winter. That was likely to give rise to prices in the market.
Richey also mentioned that the month of October witnessed a climb in price worth $3 for every million BTUs. The climb remained till the month of November. As the weather is never materialized, Rickey said that it led the demand for supply to take an upward road more than the 5 years of average.