Warm December Set Table for Gas Prices Reminiscent of 2012 Slide

摘要

Recent cold may be sucking inventories out of the ground at a clip, giving prices a boost. But it is becoming obvious that the damage done by December warmth will not be undone by what amounts to a strong cold snap. The reason, says FirstEnergy analyst Martin King, is a "very tame winter." 'December 2014 set the stage for much higher natural gas storage with the third warmest December in the past 30 years and the fifth warmest in the past 85 years. We estimate this negatively impacted US storage withdrawals by as much as 300 [billion cubic feet], leaving us that much extra gas in the ground to form an even larger cushion against any cold incursions that might erupt for the remainder of the heating season," he said.