Futures for natural gas dipped below $2.00 per million British thermal units this past week. The drop is attributed to both lower demand due to the mild early winter and large underground stocks. The U.S. Energy Information Administration reported three trillion cubic feet in underground storage among the lower 48 states, approximately 20 percent above the corresponding inventory in January 2019.

Supply has been progressively increasing due to expansion of fracking operations but recently foreign demand for LNG has declined, exacerbating the oversupply situation.