Winter Chill Causes Natural-Gas Price to Rise

Trees covered by snow are pictured on March 12, 2013 after a heavy snow storm in Godewaersvelde, northern France. Overnight on March 12 nearly 500 cars were blocked near Cherbourg where snowdrifts piled up 60 centimetres (almost two feet) as winds reached 100 kilometres (more than 60 miles) an hour. Twenty-six regions in northwest and northern France were put on orange alert because of heavy snowfalls, which Meteo France said were 'remarkable for the season because of the expected quantity and length of time'. 
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Clare Foran
Dec. 10, 2013, 8:44 a.m.

Al­though pro­ponents of nat­ur­al gas of­ten tout its re­l­at­ively low cost com­pared with oth­er sources of fuel, prices are on the rise as Amer­ic­ans turn up their ther­mo­stats to fend off the winter chill.

Ac­cord­ing to Bloomberg, the price of nat­ur­al gas to be shipped out for de­liv­ery next month came in at just above $4.20 per mil­lion Btus in fu­tures trad­ing on the New York Mer­cant­ile Ex­change on Monday. Nat­ur­al-gas fu­tures haven’t been that high since May of this past sum­mer.

What’s be­hind the pro­jec­ted price in­crease? Cold, of course. “All of this cold and snow is help­ing to push the gas mar­ket high­er,” said Tom Saal, seni­or vice pres­id­ent of en­ergy trad­ing at FC­Stone Lat­in Amer­ica in Miami.


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