Winter is finally upon us, and typically the natural gas price in winter increases, as does the demand for heating during the colder months. However, with climate change afoot, this formula isn't always a given. So the question arises: natural gas price in winter - does it always go up? A couple of winters ago, in the season of 2015/2016, gas prices reached a 17-year low due to unusually warmer weather. Similarly, the natural gas price in winter 2019 is anticipated to be low as well, seeing as temperatures should be higher than normal. And serving as a basis for this natural gas forecast is the Short-Term Energy Outlook report which was released in October by the Energy Information Association (EIA).
As per this report, winter 2019/2020 should be warmer than last year. But depending on just how much warmer it is and subsequently how low the prices will drop, energy stocks can be quite significantly impacted. Specifically, some of the stocks affected by the natural gas chart analysis for this year include, for instance, Henry Hub, which could see an average price of $2.43 per MMBtu in the final quarter of this year.
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