Friday, December 19, 2014

"Natural Gas Futures Drop to Lowest Point in Over a Year"

Most active (Jan.) $3.481 down 0.161 (4.42%); low 3.464.
From the Wall Street Journal:

Booming U.S. Production Creates Surplus
Natural gas futures fell to their lowest price in over a year on Friday in the wake of data showing the U.S. is beginning to develop a surplus of the fuel thanks to soaring domestic production.

In the selloff, the market looked past forecasts for a return to more normal winter temperatures in the coming days, with a cold blast expected to settle over much of the U.S. heading into the new year. This could boost demand for natural gas to heat homes and businesses.

Natural gas for January delivery was down more than 9 cents, or 3.5%, at $3.5513 a million British thermal units, its lowest point since Nov. 14, 2013. The selloff extended Thursday’s loss and put the futures in bear market territory after losing roughly 20% in the last month.

Though the U.S. has begun to draw on natural gas supplies for fall and winter heating needs, continued booming production from shale fields is helping to replenish supplies. As a result, withdrawals have been running less than average....MORE

Natural gas: EIA Weekly Supply/Demand Report 
While some desks are betting on a cold snap around the New Year it looks as though supply has the upper hand unless there is one heck of a cold snap. $3.598 down 0.044....