Natural gas is down 2.5% at $2.966 per British thermal unit after winter storm Stella turned out not to be as bad as initially feared. The storm was expected to dump up to two feet of snow on New York City, but has shifted inward, meaning the snow totals are less and customers may not use as much as natural gas as initially expected.
Natural gas prices have made a comeback after a rough start to the year. They tumbled to a low of about $2.65 per million British thermal unit in late February, before rebounding to a high of $3.04 on Monday. However, some analysts believe the recent rally has gotten ahead of the fundamentals. In a blog post on Seeking Alpha, former trader Andrew Hecht wrote that the “inventory number does not support higher gas prices.”