U.S. gas prices closed the fifth consecutive week with a fall

Natural gas futures on the New York Mercantile Exchange (NYMEX) fell by another 5% over the previous week, continuing their fall. For the past four weeks, gas prices have already declined almost twice. Such a sharp fall was caused by untypically warm winter weather.

Some analysts believe that this situation might still change. However, a lot will depend on weather conditions.

Gelber & Associates underlines that two and a half months are left before the end of the winter season (including part of January, February, and March). The weather during this period will have a significant impact on gas prices. If February and March are not cold enough, then the fall in gas prices might intensify from April.

Since early winter, the U.S. gas reserves were reduced by 760 billion cubic feet. This level is essentially lower than the average in the past five years. The difference is about 213 billion cubic feet.

At the same time, gas production rose by more than 5 billion cubic feet per day compared to last year.

To stabilize gas consumption to the average levels, temperatures in February and March should fall below the average ones. If this forecast is justified, at least 200 billion cubic feet more will be drawn from gas reserves.