Because of the structure of the US natural gas market, changes in gas spot prices are not immediately felt by consumers at the end of the pipeline, the Energy Information Administration said Monday. “While natural gas wholesale spot prices have dropped to relatively low levels since the end of 2014, these low prices have not translated directly into lower retail prices for consumers who use natural gas to heat their homes and businesses,” the EIA said on its website. “This short-term lag is largely due to the nature of utility regulation,” EIA said. “Over longer periods, changes in natural gas spot and residential prices are much more closely correlated.” EIA economist Katie Teller said Monday that the regulated nature of the gas market distinguishes it from the oil market, where a correlation between commodity prices and end-user prices is more clearly evident. Article continues […]