Natural-gas futures dropped to their lowest level in 17 years on Wednesday with warmer-than-normal weather expected to contribute to a below-average fall in weekly U.S. supplies of the heating fuel.
April natural gas NGJ16, +2.40% fell 6.4 cents, or 3.7%, to settle at $1.678 per million British thermal units. That was the lowest settlement for a most-active contract since Feb. 26, 1999, according to data from Dow Jones. The loss bucked the overall uptrend for energy prices Wednesday, when oil CLJ6, +2.25% logged a third straight session climb.
Prices for the fuel have been on a relatively steady decline all year as supplies levels continue to run significantly higher than the five-year average despite the plunge in prices. Year to date, futures prices have lost more than 28%.Read more by clicking right here.
In early February, an analyst predicted that natural-gas prices may drop to $1.50 as winter heating demand for natural gas drops off and demand for the fuel has to yet to climb for the summer cooling-demand season.
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