Commentary by Eric Wilder – Energy markets are generally more volatile during winter months than summer or spring.  This year’s chaotic hurricane season helped rewrite this scenario.  Record high natural gas futures have lost more than $3 per MCF in the last three sessions and there are two reasons for this drop in price: 1) a continuing spate of mild weather and 2) light trading at year end.

Natural gas in storage has declined 364 BCF since the December 1 report.  The EIA will release updated natural gas storage figures tomorrow and we’ll likely see another sizeable decline.  Barring unforeseen longterm cold weather throughout most of the country, we will have plenty of natural gas to get us through the winter.

Marketers are wary, though.  After Katrina, no one was expecting Hurricane Rita.  Still, the witching date is near and January natural gas prices should close on a happy note for consumers.  http://www.ericwilder.com  http://justeastofeden.blogharbor.com