While gas prices have dropped some in the last month, an Iowa Department of Natural Resources energy analyst says a traditional heating fuel is up in price. Natural gas is more expensive than it traditionally is this time of year, as electric companies are burning more natural gas to meet the peak energy demand with high temperatures and people cooling their homes.
The DNR’s Brian Crowe says people aren’t using natural gas to heat right now, but the higher price could be a warning sign for the colder months. He says they’re concerned about how the storage facilities are ramping up, as a huge supply would keep prices down, while a low supply would make prices go up for the winter. Crowe says it’s something they want to stay on top of.
Crowe says they’ll keep watching to see what happens as we approach the winter months. Natural gas was trading at two cents lower in June than last month, but the prices is still a dollar-and-a-half higher than it was one year ago.