NEW YORK (AP) — Mild temperatures have cooled demand for natural gas, which is used to heat homes, sending the price of natural gas down sharply Monday. Stocks of companies that produce natural gas also fell.
Natural gas is used to heat more than half of U.S. households, according to the American Petroleum Institute. But with temperatures unseasonably warm, there’s less demand for it. Temperatures in Chicago, Detroit, New York and Washington have been as much as 25 degrees above normal in the past five days, according to AccuWeather. The weather forecasting company expects the mild weather to continue next week.
Natural gas prices dropped nearly 5% Monday. And shares of natural gas producers, including Chesapeake Energy Corp., Southwestern Energy Co. and Devon Energy Corp. sunk to multiyear lows.