The price of natural gas in the United States continues to remain lower than average due to warmer winter weather. Bloomberg reported that the mild temperatures have resulted in little demand for heating fuel, contributing to the continual drop in natural gas futures.
"December has been a dud so far in terms of heating demand," Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York, told Bloomberg. "I was under the impression that we were going to see colder weather than we had last year. The forecasts so far aren't very supportive."
Temperatures in New York and Chicago were between 4 and 7 degrees warmer than usual, the article stated, and 2012 is expected to be the warmest year on record, beating out 1998 that currently holds the record. U.S. residents have not been using as much natural gas to heat their homes. Gas is used by about half of all households in the nation, according to the Energy Department.
An analyst at the Energy Management Institute told The Wall Street Journal that the natural gas market may continue to decline as temperatures are forecasted to remain above normal. Since the middle of November, futures have dropped 12 percent. The news source reported investors are also pointing to high gas exploration in the country for falling futures.