New York, NY, September 114, 2006--Natural gas prices fell to a two-year low in New York yesterday as U.S. inventories rose faster than expected. Natural gas is the fuel of choice for makers of ceramic tiles, and price rises in the past two years have been cited as a top concern for tile makers worldwide.
Natural gas futures for October delivery fell 55.7 cents (U.S.) or 10 per cent to $4.892 per million BTUs on the New York Mercantile Exchange.
At once point during the session, prices fell to $4.80--a low not seen since Sept. 17, 2004. Analysts said that the price fall was triggered by a Department of Energy report showing stockpiles rose 108 billion cubic feet to 3.084 trillion cubic feet in the week ended Sept. 8.
As recently as August, natural gas went up to $8.545, boosted by hot weather in the northeast and in Ontario.
Several news sources quoted analysts saying that utilities will run out of storage space by the middle of October, well before cold weather demand increases. One result would likely be a further drop in natural gas prices, experts say.
