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Natural gas rates are falling continuously in Texas. And many investors and financial consultants would believe that this is just the right time to start buying and investing in the area. Natural gas is continuing its bearish march because of several reasons collectively contributing to its price fall.

The Gasoline prices have fallen to almost 20 cents over the past month in Texas. The statewide average cost has come down to $2.31 a gallon from $2.34 just within a week. Houston, Fort Worth and Amarillo have the most inexpensive gas @ $2.28. Even the highest rates (in El Paso) are at $2.45. Austin is midway at $2.34 a gallon which is still below 3 cents from last week. Compare these rates with those during 2008 - $3.94 a gallon and you will realize the dip yourself.

The low demand is keeping the gasoline and heating oil at their highest levels in 24 years. This low demand again is a resultant of few important reasons. Consumption has cut down by 36% from January to April. The temperature this summer has been moderate so demand for natural gas was obvious to go down. As a result, the stockpiles have been growing. Additionally some new fields are doing fairly well in production terms, thus, only adding to the stocks. So simple economics say that while demand has slowed down and production is on a high. Naturally, prices have to go down.

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