Natural gas prices recently hit their lowest level in seven years. According to financial experts, this sharp drop was caused by the combination of an excess in supplies, as well as a lack of demand for natural gas. This has caused traders to continue selling natural gas futures, and as a result has pushed the price down significantly. The last time that natural gas prices were this low was all the way back in August of 2002.

According to some people, in addition to the combination of an excess in supplies, as well as a lack of demand for natural gas, there is another reason for this sharp drop in natural gas prices. Some people have said that the utility companies have purchased or are delaying the purchase of the natural gas that they think they will need for the winter. The reason that this statement is significant is because if utilities are bluffing or wrong in their projections, there is the possibility that a savvy person could make a significant amount of profit by purchasing natural gas futures.

Normally, when any price in the stock market goes down, our first reaction is to assume that it’s a bad thing. However, in the case of natural gas prices going down, most experts say this is actually a good sign, and a positive thing for consumers. They say that this also has to do with the fact that because there is ample storage and gas production has made a significant move on shore, any threat of a hurricane does not carry the same threat that it used to in the past.