WASHINGTON — The U.S. Energy Information Administration (EIA) has released its short-term energy and summer fuels outlook for April, and natural gas prices plunged with the reported excess supply and lowered demand due to warmer weather and a weak economy.On April 3, working natural gas in storage was 1,674 Bcf, EIA says, with current inventories 310 Bcf above the five-year average and 438 Bcf above the level during the corresponding week last year. This year’s end-of-March working natural gas storage level was the second highest recorded since 1991, exceeded only by the 1,692 Bcf recorded at the end of March 2006.The companies that buy and distribute natural gas in bulk are still passing on the premium prices they paid last summer, but distributors are signing contracts now for next winter at today’s lower rates. Natural gas futures ended last week at $3.61 per 1,000 cubic feet, down from a July peak of $13.69, for a drop of 74%.On average, the price of natural gas makes up about two-thirds of the bill with transportation, taxes, and other expenses covering the remaining costs.
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