Natural-Gas Futures Slide well below $3

Natural Gas Jan 11, 2012 No Comments

Natural gasNatural gas for February delivery ended the day down 16.7 cents at $2.774/MMBtu on the New York Mercantile Exchange, the lowest settlement for a front-month contract since Sept. 4, 2009.

Natural-gas futures dropped 5.7% to settle at their lowest level in more than two years after revised weather forecasts indicated a warming trend across much of the nation.

That dashed hopes that demand for the fuel to heat homes and businesses would increase any time soon and alleviate the glut of natural-gas supply plaguing the industry.

“As warmer-than-normal conditions eke their way back onto the weather outlooks out toward the end of January, natural gas is being absolutely crushed like a grape,” Summit Energy analyst Matt Smith said in a note.

The steep selloff pulled futures well below the level of $3 per million British thermal units, a range prices had been trading near for about two weeks. The drop also left analysts and traders wondering when—and how—the slide might stop.

 

via Natural-Gas Futures Slide – WSJ.com.

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Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.

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