This year, Punxsutawney Phil took his place on Gobbler’s Knob and did not see his shadow. According to legend, this indicates an early spring in on the way. Meteorologists don’t always agree with Punxsutawney Phil, but this time, AccuWeather meteorologists appear to be in agreement. The U.S. recently experienced one of the warmest Januarys in history and above normal temperatures are expected in most of the country throughout February. An update to the near-term forecast is showing a significant warm-up across the eastern part of the U.S. The lack of winter-like temperatures this year has caused the energy market to continue to decline. The February contract settled at $1.877 per MMBtu, the lowest settlement the market has experienced since October 1995, which settled at $1.866 per MMBtu. Natural gas prices just reached a 47-month low, with the March contract currently trading near $1.766 per MMBtu. The Energy Information Administration (EIA) reported that natural gas storage experienced a net decrease of 137 Bcf for the week ending January 31st. Storage levels are now 30.8% above last year’s level and 8.3% above the five-year average, for the same reporting week. A warmer than normal winter, reduced LNG exports, and these strong production levels have positioned the natural gas market to hit multi-year lows.
