US natural gas price sees heavy decline
The US benchmark for the price of natural gas was in a freefall on December 6, dipping below the $4/mn Btu mark for the first time since late August.
The January gas delivery contract at the US Henry Hub was down 8% as of 12:33 GMT to trade at $3.80/mn Btu. The decline marked a continuation of last week’s slump, when the contract lost 24% during the week ending December 3.
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The downward trend may be short lived given forecasts for inclement weather in the US. The National Weather Service forecasts several inches of snow for parts of the Great Lakes region and frigid temperatures for the Northern Plains and Upper Midwest. Wind chill temperatures for parts of those regions are expected to be as low as 30° below zero Fahrenheit.
The impact on commodity prices from the Omicron variant of the novel coronavirus that causes COVID-19 may be fading. Dr Anthony Fauci, the top infectious disease expert for the US government, told CNN’s State of the Union on December 5 that while the new variant is highly contagious, early indications are that those infected show only moderate symptoms.