Huge Supplies & A Mild Winter Causes Natural Gas Prices To Drop on Jan. 12, 2012 To Near Historic Lows:

The price of natural gas for February delivery fell 8 cents to end at $2.6970 per 1,000 cubic feet on Jan. 12.  The price has fallen 13% this week alone due to a relatively mild winter weather cutting heating demand and huge supplies.  On Jan. 12, 2012, the Energy Information Administration said supplies are 13.4 percent higher than what they were a year ago and 17 percent above the five-year average.  On Friday, Jan. 13, 2012 the price of natural gas had fallen to $2.659/per 1,000 cubic feet at 1:34 pm CST.  And the price kept dropping....On Tuesday,  Jan. 17, 2012 the price of natural gas fell 18 cents to end the day's energy market trading session at  $2.49  per 1,000 cubic feet in New York for February delivery.  That price represents a fall of 17 percent for the month or 45 percent lower than a year ago.  The price fall on Jan. 17 had natural gas contracts for February delivery  at or near their lowest levels since March 2002.