Relief for Consumers as Natural-Gas Prices Drop ; Ten Months after Katrina Caused a Price Spike, Electric Utilities Switch to Natural Gas

Beginning of article

Even with their air conditioners at full blast, some consumers might eventually be in for a surprise: relief on their energy bills.

The price of natural gas has fallen about 50 percent since hurricane Katrina drove up prices last fall. As oil prices hover around $70 a barrel, analysts say the spot price of natural gas now equals the energy potential of oil worth $41 a barrel - a differential that is spurring businesses and utilities to start switching over to the less costly fuel.

They are finding many eager sellers. Storage is at such high levels that some producers will either have to further reduce their prices orcurtail production. The high inventory volumes …