This past November experienced an 18% increase in natural gas prices. Along with increasing demand caused by cold weather in the mid-west and east coast, natural gas inventories are lower than the five-year average range. Combined, these factors contribute to the November increase in gas prices.
Natural Gas Price History
Under normal circumstances, dips in natural gas supply would not cause a large price shift. Strains on natural gas storage usually do not cause a noticeable price difference for consumers. However, while some price instability is not unheard-of during winter months, we are seeing lower average temperatures this year.
United States’ November natural gas supply stores are 15% lower this year compared to last year. In addition, stores are also 16% lower than the 5-year average and the lowest since 2003, a fifteen year low for this winter season that, in turn, caused natural gas prices to increase.
Cold Weather and Winter Storm Complications
Alongside lower natural gas stores, cold weather is driving up demand and contributing to higher prices. In early November it was predicted that the month would register the coldest temperatures since 1950. Colder weather predictions and falling temperatures all over the United States drive up prices and put strains on supplies already lower than average.
Winter storm Bruce, towards the end of November, wreaked havoc across United States during Thanksgiving holiday and covered a large area. This rare November winter blizzard has brought cold temperatures and snowfall across the United States, covering the Plains and Midwest to the Rockies and interior Northeast. States like Illinois scheduled a winter preparedness policy session to ensure that the state can meet natural gas demands for the coming months.
Storms like Bruce lead to further increases in natural gas prices as consumers’ need to heat their homes and water grows with the lower-than-average temperatures this winter season.
As winter 2018 is expected to be colder than last year and record snowfall is expected, we can expect to see natural gas prices to continue to see some price volatility.
Plan for Price Fluctuations with Fixed Pricing
Due to weather and supply shortages, customers will begin to see rising prices from their natural gas delivery companies. Customers who wish to take control of their natural gas spending have the option to work with natural gas suppliers like Santanna Energy to lock in their natural gas prices in fixed rate contracts.
With Santanna Energy, customers can enjoy peace of mind without worrying how supply and weather will affect their service and their budget.
Start by entering your zip code below today to get in control of your natural gas bill and avoid fluctuating gas prices this winter season