Natural gas price diving when it usually rises, on mild weather, high supplies

Associated Press

The price of natural gas is down 30 percent in just over a month and homeowners could enjoy lower electricity prices and heating bills in the coming months.

A warm December and plentiful supplies are behind the plunge, which comes at a time when natural gas prices usually rise.

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Natural gas is used by half of the nation's households for heating and to generate 26 percent of the nation's electricity.

Natural gas prices rose during a frigid November. But December warmed up, and temperatures for the rest of the winter are expected to be close to normal. That could keep prices low through the spring, analysts expect.

On Tuesday, Natural gas rose slightly to $3.15 per 1,000 cubic feet, down from nearly $4.50 in late November.