Futures prices fell to a one-month low on Friday after plunging more than 12% for the week. The commodity is currently trading around $2.34 per million British thermal units, which is nearly 50% below where it traded a year earlier. It’s down 21% for 2019.
Excess supply is pressuring prices. Inventory built up last spring following a warmer-than-expected winter, and U.S. production has climbed to a record high, according to data from the U.S. Energy Information Administration.
A milder fall season is also having an impact on prices. According to Credit Suisse, temperatures since September have been 4% warmer than they were last year, although they are 20% below the 5-year average.
Bespoke Weather chief meteorologist Brian Lovern said that since the middle of the summer the weather has been bullish, but that the excess supply is what’s keeping prices lower. Going forward he said to expect volatility as…