Winter weather has arrived, blanketing much of the country, and even Louisiana, in freezing temperatures. But heating fuels are priced like it’s still summer, The Wall Street Journal reports.
No matter how Americans heat their homes, they’re probably paying less this year than last to stay warm. Natural gas prices are 30% below where they traded a year ago. Meanwhile, the national average price for residential propane is 22% less than last year and heating oil is down 11%, according to the U.S. Energy Information Administration.
Lower prices now, on the cusp of heating season—when prices should be rising as furnaces switch on—show how the glutted energy markets that threaten oil and gas producers are benefiting U.S. households.
Natural gas futures for December delivery settled down 0.8% on Wednesday to $2.60 per million British thermal units on the New York Mercantile Exchange.
Prices for the heating and power-generation fuel are down 9% since hitting $2.86 on Nov. 5. That was the culmination of a two-week climb fueled by forecasts for the current cold blast and promises of restraint from Appalachian gas producers, such as CNX Resources Corp. and Cabot Oil & Gas Corp., which have suffered from low prices.
Natural gas hasn’t been so inexpensive at this time of year since 2015, when mounting supplies prompted a historic crash. Before that, it was 2001 when November prices were so low. Read the full story.
