US natural gas prices fell to a 13-year low on Monday in response to forecasts of a mild winter, which will lower heating demand through the end of the month.

US natural gas prices hit 13-year low

NEW YORK, December 15, 2015 – US natural gas prices fell to a 13-year low on Monday in response to forecasts of a mild winter, which will lower heating demand through the end of the month.

Gas futures in the New York Mercantile Exchange continued its four-day decline, dropping 4.8% to $1.894 per million British thermal units. Gas futures for 2016 fell to $2.23 yesterday, $0.42 below the 2015 average of $2.65 and the lowest annual price per British thermal unit since 1998.

The commodity has been depressed for most of 2015, as production remained at record levels over the summer, up to 2.14 bcm (76.5 bcf) per day. Exports to Mexico also rose to a record-breaking 123 mcm (4.1 bcf) per day.

The federal government expects US to become a net exporter of gas in 2017 as pipeline delivery to Mexico increases and LNG exports to Europe and Asia begin next year.

Read our latest insights on: