Natural-gas prices have dropped more than 65% since mid-December (wholesale, contractor, buy)

[moguldreamer]

Natural-gas prices have dropped more than 65% since mid-December and this week hit their lowest level since 2020’s pandemic lockdown, leading producers to throttle back drilling in a dramatic turn in the market for the heating and power-generation fuel. Expensive natural gas was a contributor to inflation measures over the past two years.

Eventually, this will show up in our home heating bills (mine have been ~ $1500/month this winter).

[mathjak107]

Of course most here don’t understand a lot of what we are seeing has nothing to do with money supply .

Eggs fell 52% from their high .

In March 2022, the price of lumber was around $1,460. On January 6, 2022, prices fell to $354


Increase the supply of many things and prices fall

[MickIlhenney]

Originally Posted by moguldreamer

Eventually, this will show up in our home heating bills (mine have been ~ $1500/month this winter).

That's crazy! Where do you live? Mine average $160 right now (Ontario, Canada).

[mathjak107]

It is the Henry hub spot price

https://www.naturalgasintel.com/aver...-high-in-2022/

[Fedupwiththis]

Originally Posted by mathjak107

Of course most here don’t understand a lot of what we are seeing has nothing to do with money supply .

Eggs fell 52% from their high .

In March 2022, the price of lumber was around $1,460. On January 6, 2022, prices fell to $354


Increase the supply of many things and prices fall

Which is super annoying because I was looking to put a split rail fence around an acre and got quotes early last year but decided to hold off because of lumber prices and I figured they'd eventually come down. Now that prices have "come down" I'm really not seeing any decrease in wood fencing.

[Lincolnian]

All the electric supply rate increases that were pushed through and approved were based on the high price of natural gas used for generation. Now we are at the low end of the 10-year range yet I see no calls for electric supply rate decreases. What gives?

[mathjak107]

There always is a delay between raw commodity prices and manufacturing…..

Older inventory bought at higher prices has to get moved out .

No different than gasoline ….when spot prices fall it takes time to see the full change at the pump ..

I Was an Electrical supply wholesaler .we have a huge copper wire inventory…..we all adjust prices immediately when they go up .

But going down we all try to clear out our higher bought inventory before selling it for a loss .

As long as other distributors do this we all can but when one major player drops we all have to drop regardless of what we paid.

So prices rise immediately when markets do , but It’s the old who flinches first situation on the way down.

Many of the big wire houses hedge their inventory with futures contracts ..

So being hedged they tend to drop first …. We all have to drop too at that point or our contractors will buy elsewhere until we do

[aboucher33]

Crazy how I haven't heard about this on the news but you damn sure knew when prices were increasing.

[BeerGeek40]

Originally Posted by Lincolnian

All the electric supply rate increases that were pushed through and approved were based on the high price of natural gas used for generation. Now we are at the low end of the 10-year range yet I see no calls for electric supply rate decreases. What gives?

Electric prices are down, but they are coming down at a lot lower pace than are natural gas prices.

[rabbit33]

Originally Posted by moguldreamer

Natural-gas prices have dropped more than 65% since mid-December and this week hit their lowest level since 2020’s pandemic lockdown, leading producers to throttle back drilling in a dramatic turn in the market for the heating and power-generation fuel. Expensive natural gas was a contributor to inflation measures over the past two years.

Eventually, this will show up in our home heating bills (mine have been ~ $1500/month this winter).

What? Petroleum product prices being volatile? Say it isn't so!

Really, where have you been the last 60 years?