NYMEX natural gas hit a low of $2.643/mmBtu yesterday, the lowest level since Feb.2017. Natural gas plunged to 10-month low on slack weather related demand.
Weather related demand is usually high during winter as cold weather increases demand for heating fuels like natural gas. Weather related demand has been low this season due to lack of sustained cold weather
According to US weather forecaster NOAA, warmer-than-normal seen temperatures in U.S. Southeast while cool weather seen descending on U.S. Northwest from Dec. 20-24.
Slack demand and robust production has also helped reduce the deficit in stocks. US EIA weekly report noted a 69 Bcf decline in US natural gas stocks as against forecast of 60 Bcf decline.
The stock decline was however less than usual decline for this time of the year and the deficit to the five-year average declined for the fourth week in a row. Net withdrawals compared with the five-year (2012-16) average net withdrawal of 78 Bcf and last year's net withdrawals of 132 Bcf during the same week. Working gas stocks totaled 3,626 Bcf, which is 27 Bcf less than the five-year average and 201 Bcf less than last year at this time.