Natural Gas Prices Cool Off As Forecasts Call For Mild Winter

Earlier in October, the price of natural gas recently traded at the highest levels in around 22 months but have since cooled off as some forecasts are calling for a more mild winter.

On October 10, the price of natural gas traded at $3.265 per million British thermal units on the NYMEX, marking the highest level reached since it traded at $3.464 in late December 2014.

However, the price of natural gas for November delivery is trading at $3.18 as of Thursday morning ahead of the EIA weekly natural gas inventories, which will be at 10:30 a.m. ET.

Weather Network: Expect A Different Winter This Year

The Weather Network offered its winter weather forecast, which is calling for a winter that is different from last year.

According to The Weather Network, a pattern is expected to play out in which a trough position near the Hudson Bay will bring "frequent and persistent outbreaks of arctic air to much of the central and eastern US." If this pans out, then the west would see milder conditions this winter.

It's still too early to tell when the relatively warm fall season will transition to the colder winter pattern. If this occurs in December, than most larger regions of the central and eastern US will see below normal temperatures for the winter as a whole and the Gulf Coast may be removed from the "above normal" category.

Meanwhile, there are indications of a "false start" to winter and we may see an initial cold snap in November but December will be rather mild.

Despite a mild December, the bottom half of winter is expected to feature an "extended period of classic winter weather" for most of the central and eastern parts of the country.