Natural gas prices slump despite US winter weather blast

LOS ANGELES – While the polar vortex is driving up demand for natural gas, it isn’t doing the same for the price.

The massive weather system is blanketing much of the Midwest and Northeast in a deep freeze, and demand for natural gas is spiking as homeowners crank up the heat to stay warm.

Yet natural gas prices have fallen this week and are in the throes of a two-month skid. The price closed at $2.81 per 1,000 cubic feet Thursday, down 42 per cent from a recent high in November.

Among the reasons for the price drop: The bone-chilling cold will be relatively short-lived. Supplies of natural gas are sufficient. And forecasters say warmer than normal weather is coming to replace the big chill.