Natural gas prices drop due to mild weather

NEW YORK -- Mild temperatures have cooled demand for natural gas, sending its price down sharply Monday. Stocks of companies that produce natural gas also fell.

See Full Article

Natural gas is used to heat more than half of U.S. households, according to the American Petroleum Institute. But with unseasonably warm temperatures, there's less demand for it. Temperatures in Chicago, Detroit, New York and Washington have been as much as 25 degrees above normal in the past five days, according to AccuWeather. And the weather forecasting company expects the mild weather to continue next week, with temperatures expected to be between 20 and 30 degrees above normal.

Besides warm weather, there's also an oversupply of natural gas that's pushing prices down. Raymond James analysts said last week, in a note to clients, that they expected natural gas prices to remain "depressed" into next year due to the oversupply.

On Monday, the price of natural gas fell 4.8 per cent to $1.90 per 1,000 cubic feet.

Shares of natural gas producers sank to multi-year lows Monday.

Chesapeake Energy Corp.'s stock fell to a 15-year low, while shares of Southwestern Energy Co. and Devon Energy Corp. both fell to 11-year lows.



Advertisements

Latest Economic News

  • Amazon gives glimpse of the future of grocery shopping — and it's grab and go

    Economic CBC News
    Amazon has opened a small physical store that could be the future of grocery shopping, one where customers walk in, collect their purchases from the shelves and walk out — all without ever needing to line up to pay or check out. Source
  • GM's car sharing service to make Canadian debut in Kitchener

    Economic CBC News
    GM plans to expand its Maven vehicle sharing service to Canada and its first location will be Kitchener. Kitchener city council approved a plan last night to rent five parking spots to GM in a lot at the corner of Charles and Water streets, near Communitech, for the next year. Source
  • BMO grows fourth-quarter profit 11 per cent to $1.35 billion; boosts dividend

    Economic CTV News
    TORONTO - Bank of Montreal (TSX:BMO) grew its fourth-quarter net income 11 per cent to $1.35 billion. That's up from $1.21 billion the bank earned during the same quarter last year. The earnings amounted to $2.02 per share, up from $1.83 per share a year ago. Source
  • Live on TV: Moment of reckoning for S. Korean business elite

    Economic CTV News
    SEOUL, Korea, Republic Of -- It's a rare moment of public reckoning for South Korea's most powerful business leaders, courtesy of the country's biggest political scandal in years. Usually cloistered executives from Samsung, Hyundai Motor and six other companies faced grilling Tuesday as lawmakers looked into their links to prosecution claims that South Korean President Park Geun-hye allowed a corrupt confidante to pull government strings and extort companies. Source
  • Along Trans Mountain pipeline, opinions range from pro to protest

    Economic CBC News
    The Trans Mountain pipeline hasn't changed much since it was built in 1952. Carved out of the land between Alberta's oil country and the B.C. coast, it began moving about 300,000 barrels of crude a day across the Rockies the following year. Source
  • Free speech vs. copyright in Supreme Court battle between Google, B.C. firm

    Economic CTV News
    OTTAWA -- A legal fight between Internet giant Google and a British Columbia technology company unfolds today in the Supreme Court of Canada, where they will duel over competing free speech and copyright infringement issues. Source
  • Asian stocks rise after record day on Wall Street

    Economic CTV News
    HONG KONG - Asian stocks rose Tuesday following another record day on Wall Street as investor optimism bounced back quickly after the Italian referendum. KEEPING SCORE: Japan's benchmark Nikkei 225 index climbed 0.5 per cent to 18,370.83 and South Korea's Kospi jumped 1.2 per cent to 1,985.85. Source
  • Stocks track higher after Wall Street hit another record

    Economic CTV News
    HONG KONG -- Stock markets pushed higher on Tuesday as investors cheered another record day on Wall Street and looked past the political and economic uncertainty buffeting Europe. KEEPING SCORE: France's CAC 40 added 0.5 per cent to 4,596 and Britain's FTSE 100 edged 0.4 per cent higher to 6,771. Source
  • Ikea to offer expanded parental leave

    Economic CTV News
    NEW YORK - Ikea's U.S. division is offering longer parental leave to employees who are new parents, following similar overtures from tech companies like Netflix as it strives to keep good workers in an improving job market. Source
  • Ikea expanding parental leave; crib assembly still your job

    Economic CTV News
    NEW YORK -- Ikea's U.S. division is offering longer parental leave to employees who are new parents, following similar overtures from tech companies like Netflix as it strives to keep good workers in an improving job market. Source