Natural gas prices have crashed 50% in less than a month

Geo-TH,In

Well-known Member
Natural gas prices have plunged over the past month as an unusually warm winter hits both the US and Europe, denting demand for the heating source.

NG is used to make nitrogen fertilizer.

Propane is a fossil fuel thats found naturally, alongside natural gas and oil. Propane is separated from natural gas.

This could be good news for farmers next year.
 
Only a few months ago folks here predicted Europe would be brought to its knees by a shortage of natural gas. Hasn't happened yet, and probably won't.
 
KNOT Offshore Partners LP owns, operates, and shuttles tankers under long-term charters in the North Sea and Brazil. The company provides crude oil loading, transportation, and storage services under time charters and bareboat charters. The Partnership is formed for acquiring ownership interests in over four shuttle tankers owned by Knutsen NYK Offshore Tankers AS (KNOT). It operates through the shuttle tanker market segment.

KNOT/KNOP stocks are way down because of a surplus of crude in the UK.

Less demand for crude may be why our gas and diesel prices are going down too.

So farmers may be happy to pay less for fertilizer, propane and diesel fuel.
 
> KNOT/KNOP stocks are way down because of a surplus of crude in the UK.
> Less demand for crude may be why our gas and diesel prices are going down too.
> So farmers may be happy to pay less for fertilizer, propane and diesel fuel.

As the saying goes, 'be careful what you wish for, you just might get it'. In the end, petroleum prices respond to market forces. As do the fortunes of the petroleum industry and its employees. For every farmer elated to buy cheap fertilizer, there's a laid-off oil field worker somewhere.
 
(quoted from post at 04:38:07 01/23/23) Only a few months ago folks here predicted Europe would be brought to its knees by a shortage of natural gas. Hasn't happened yet, and probably won't.

Only because of DUMB LUCK. The winter has just happened to be warmer than average so far.

Rest assured it's nothing that anyone around here did, so if anyone here is reaching to pat yourself on the back, you can stop straining.

If we got a winter like we had last year, there would be a much different tune being sung.
 
> Only because of DUMB LUCK. The winter has just happened to be warmer than average so far.

No, it was a combination of luck and planning. Planning by the Europeans lead to record high prices. Which lead to more supply, much of it LNG from North America. Sometimes you need to make your own luck.
 
Good morning good neighbor, hey EV or Gas or Climate threads are risky you know lol the trolls may jump all over this but hey its all fun reading so keep your posts coming yayyyyyyy I enjoy them until POOF

Being a Natural gas heating user its easier on my pocketbook if prices drop so Im happy yayyyyyy

HOWEVER some others may NOT like this news ?? and tell the rest of us why its bad ??

What you say can be good for some (users) or bad for others (producers and sellers) TO EACH THEIR OWN

Maybe some Gas and energy experts will enlighten all of us on the topic ?? Id guess Supply and Demand may have something to do with it ???

Regardless if you like lower or higher natural gas prices best wishes and have a good day

John T
 
Unusually warm last month? It was -7 here right before Christmas! -30 windchill. Good thing my firewood suppy is good.
 
Isn't this fun - coming to the realization that we all need each other? As an old minister friend of mine would say on occasion - I think that would preach!
 
Got news for you. We've been doing well for a while now. I've sold 8 steers so far this year and got as much for them as I'd have gotten for 15 in the trade war years. Of course some people absolutely DO NOT want to hear that anybody is doing well right now, as evidenced by the responses when I said that a month or so ago. It actually makes the faithful very angry. Fuel's down substantially, fertilizer prices already dropped 50% last June after planting was done, now they're going even lower? Bring it on. I'll be able to pay cash for that new EV.
 
(quoted from post at 06:46:04 01/23/23) I haven't heard anyone from Buffalo talking about an unusually warm winter.

Well now you have.

It's been above freezing all but one or two days this January in Buffalo.

That 100" of lake effect snow wasn't because it was cold. It was because it was WARM. If it were cold, the lake would freeze over and there would be NO lake effect snow. Because it's been warm the lake is not frozen over at all and any time a little puff of cooler air comes sweeping across, BOOM, Buffalo gets dumped on.

This post was edited by BarnyardEngineering on 01/23/2023 at 06:31 am.
 
Doesn't have to be cold to get snow in the Lake Erie snow belt. I'm close to Cleveland and we get snow in the mid thirties. Other than the Christmas
week cold snap it's only been a few nights below freezing and not really much snow either.
 
Actually dropped more than 50% since September.

our gas company NIPSCO hasn't dropped their prices. the Dec/Jan price was the same as Nov/Dec price.

alot of the high prices was speculation. some of those guys probably got burned


i like to see the cold because its part of the natural cycle of things

.... but.... since the farm house (we don't live there) is fuel oil i'm not complaining about the average to slightly above ave temperatures we're having I dodged the bullet and didn't have to buy fuel oil at $6.10/gal. was able to buy as about $4/gal with tax delivered. will need to get more before spring so hoping it will stay low.

gas around here has gone back up about 50cents. had been down to $2.89 then back up to $3.49, $3.29 now. Need to run some of the legislators out of Indy. buggers have been spending too much $. a couple years ago oops we're out of gas tax $ for roads because we spent it somewhere else so we have to raise the gas tax but this time we promise not to spend it somewhere else. ... rrrriiiight...
 
Thats interesting because my home heating increased by almost 50% starting in December. And I'm betting the world price of ng won't make the slightest difference to the price we pay for fertilizer. Its already insanely high and won't surprise me a bit if it goes higher.
 

Isn't this fun - coming to the realization that we all need each other?

X2 There are a few people here who are kind enough and have the time to dig and research before posting an answer HUGE THANKS TO THEM Ive got more to do besides here so cant do that myself but YES we need and can help each other and some here take the time to find and provide some good insights yayyyyyyyyyy of course thats no guarantee what they find and post is accurate but hey neither is anything posted here lol

Best wishes and thanks to all who research and post answers or opinions

John T
 
I don't think lower prices hit me yet as I just paid one of the highest bills for gas and electric that I can remember paying. It hasn't been near as cold as it usually is this time of year either.
 

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Not dropped to much.
 
We are east of Buffalo by 40 minutes or so. I agree 100
percent. Besides the 2 storms we did have because its
been warm we have had a very mild winter so far. Not
complaining.
 

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