EIA: Natural gas use will slide this year
Natural gas futures already showing year-over-year price slide
By Tom Stundza -- Purchasing, 4/15/2009 2:08:00 PM
Natural gas consumption by industry will tumble 7.4% percent in 2009, the U.S. Energy Department’s Energy Information Administration forecast this week in a new report. Upshot: Natural gas futures continue to stumble, according to Bloomberg, on speculation that demand for the industrial fuel will be stagnant throughout the year as the U.S. recession lingers and use will be slow to recover.
Natural gas for May delivery rose 4¢ to $3.729/million British thermal units (Btus) yesterday on the New York Mercantile Exchange. However, overall, market prices are down almost 36% in the three-plus months of this year.
Natural gas is used to make chemicals and steel and to operate plants that accounts for about 29% of U.S. demand, according to Energy Department data. However, U.S.Commerce Department data shows that auto dealers, electronics stores and restaurants have bought less natgas than through the first four month of last year.
See also, Natural gas price forecasts are well under 2008 levels
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