U.S. gas fell to minimal level since June 2021

The consumption of gas in the U.S. exceeded expectations. Nevertheless, this is not enough to increase prices from a 19-month low.

On Thursday, the cost of February’s gas contracts on the New York Mercantile Exchange fell by 1%. Now it is $3.275 per mmBtu. This is the lowest closing price since June 22, 2021. 

A decrease occurred despite the Energy Information Administration (EIA) informing that the U.S. utilities used 82 bfc of fuel from the gas storages last week. That exceeded the expectations of analysts, which had forecasted 71 bfc.

According to a partner of Again Capital John Kilduff, now, the normal winter cold is returning, and traders can't control it.

The nearest meteorological forecasts are ambiguous. The basic models, including European ECMWF and American Global Forecast System (GFS), show cold weather in late January.

However, GFS downplays the strength of the fall in temperature. It expects an arctic air mass of fairly average temperature rather than the freezing cold, which was everywhere in December, including south Texas.