PAY MORE OR FREEZE: Extremely cold winter to put upward pressure on prices of natural gas
11/12/2021 / By Matthew Davis
The Energy Information Administration (EIA) said natural gas prices are expected to be volatile across the United States as the winter heating season begins.
In its Short Term Energy Outlook (STEO) published on Nov. 9, the EIA estimated that U.S. natural gas storage levels had risen to within 3 percent of the previous five-year average at the end of October. But extremely cold weather in February also led to lower-than-average natural gas storage levels across the nation throughout the summer.
“Mild weather has limited natural gas consumption and helped bring our storage levels closer to average in recent weeks, but cold winter weather could continue to put upward pressure on prices,” said EIA Acting Administrator Steve Nalley. “Winter temperatures will be the key driver of natural gas demand, inventories and ultimately prices.”
However, EIA is also expecting natural gas prices to remain volatile over the upcoming months with uncertain winter temperatures remaining a key driver of demand and prices. The outlook comes after Eversource Energy stated earlier this month that customers could see natural gas heating prices rise by 15 percent, costing an average of $30 per month more compared to 2020.
https://www.climate.news/2021-11-12-winter-to-put-upward-pressure-natural-gas.html
