What drives natural gas?

A confluence of factors has driven natural gas prices in the US to all-time highs in the fourth quarter of 2005. In spite of a relatively mild autumn and predictions for moderate winter temperatures, record summer heat and two major hurricanes have been more than enough to drive markets to fear the worst.

Inventories started in April significantly above the previous year, but extra high air-conditioning demand, then the two Gulf Coast storms that hit in August and September, reduced supplies.

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