Natural gas prices got clobbered this year and the most recent leg lower only added to the carnage. Have we reached the point where enough is enough?
Every aspect of the natural gas market conspired against it, from supply to demand to the chart technicals.
It was a tepid summer, with nary a heat wave for most of the country, especially on the heavily natural gas dependent East Coast. The weak cooling demand enabled storage levels of natural gas to rise to a record amount.
The storage level increases continued into November, well past the typical end-point of the so-called injection season at the end of October. Total natural gas in storage surpassed 4 trillion cubic feet for the first time ever. Natural gas prices reflected that dynamic, falling well-below $2 per million British thermal units. And prices are at levels not seen since 2001.
The latest blow to the natural gas bulls is the incredibly warm December, which is following the record warm November. The warm weather is set to intensify, with temperatures expected to hit 70 degrees in New York on Christmas Eve day
[“source -cncb”]
