home Finance, Oil Prices, Oil Stocks Crude oil drops again, but nat gas snaps back on colder weather outlook

Crude oil drops again, but nat gas snaps back on colder weather outlook

U.S. crude oil fell below $34/bbl for the first time since 2009 before settling with a $0.25 loss at $35.81, but January natural gas jumped $0.14 (+7.9%) to $1.19/MMBtu for the largest gains in nearly two months as signs of cold and stronger heating demand creep into forecasts.

Gas had been down 25% in December but snapped back as Monday morning weather updates begin to show temperatures closer to normal in the eastern U.S. and below normal in the Rockies to end the month after weeks of unseasonably warm weather nearly canceled the beginning of heating season.

“You don’t want to be the guy that’s left holding the bag,” says one Nymex trader on today’s sudden turnaround in nat gas.

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