October 31

10/31 – Natural gas prices are a lot less scary than just a few months ago. The hot summer that drove high energy usage for air-conditioning has given way to a mild fall. Natural gas output is up, and storage facilities are now just 5.5% below the 5-year average, compared to -18% in April and -13% in August. As a result, natural gas futures have plunged by 41.3%, from highs of $9.68 per million BTUs in late August, to $5.68 on Friday (10/28). Following the shutdown of Russia’s Nord Stream pipeline (8/31), an increase in liquid natural gas exports to Europe are expected to keep U.S. prices well supported through winter. The Energy Information Administration expects households that heat with natural gas (roughly 50% of the U.S.) to spend 28% more for heat this winter than a year ago. Higher costs for energy and housing could depress potential restaurant spending for the next few years.