Natural Gas Prices Reach Lowest Point Since 2012

From Bloomberg:
Natural gas futures tumbled to the lowest since April 2012 as traders reacted to near-record inventories and mild weather that’s pushing back the start of winter demand for the heating fuel. 
The eastern U.S. may be warmer than usual from Nov. 1 to Nov. 10, according to Commodity Weather Group. Stockpiles totaled 3.81 trillion cubic feet Oct. 16, 4.5 percent above the five-year average, according to a government report. Bank of America Merrill Lynch analysts lowered their year-end price target. 
“The pressure is on here with the lack of weather and the storage situation,” John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund, said by phone. “It’s really gotten the attention of a lot of investors suddenly just how oversupplied we are.”

Natural gas for November delivery fell 22.4 cents, or 9.8 percent, to settle at $2.062 per million British thermal units on the New York Mercantile Exchange, the lowest since April 26, 2012. Futures touched $2.05 in the biggest intraday drop since February 2014. Volume was 90 percent above the 100-day average.
Click here to read more.

Connect with us on Facebook and Twitter!

Popular posts from this blog

US Postal Service Subpoenas Chesapeake Energy on Royalty Payments

Rig Count Declines Again in Utica Shale