By Ryan Dezember

Natural gas prices have dropped roughly 20% since hitting a three-year high a week ago thanks to warmer forecasts for the holiday season.

At about $4.25 per million British thermal units, the heating and power generation fuel is now about $1 cheaper than a week ago.

It's also below the $4.30 to which the Energy Information Administration this week raised its estimate for average prices this heating season, which runs November through March. The EIA raised its predicted price by about 10% from its November outlook to account for weather this month that has so far been colder than expected.

The agency today reported a larger than expected withdrawal of gas from storage facilities to fuel furnaces and boilers during last week's icy spell.

But the constantly updated forecasts that energy traders rely upon have recently turned warmer for the weeks ahead, prompting the sell-off in gas futures and suggesting that Americans' heating bills this winter might not be as high as feared.

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(END) Dow Jones Newswires

December 11, 2025 11:57 ET (16:57 GMT)

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