U.S. (Natural)Gas Slumps to 14-Year Low as Forecasts Keep Getting Warmer
Source: Bloomberg
Record warmth sent U.S. natural gas prices tumbling to a 14-year low as December appeared to be a bust for bulls.
Gas slumped as the latest forecasts showed temperatures more than 20 degrees Fahrenheit above normal in parts of the eastern U.S. later this month. Cities from Lexington, Kentucky, to Binghamton, New York, broke temperature records dating back to the 19th century over the weekend, AccuWeather Inc. data show. New York City reached a high Sunday of 67 (19 Celsius), a record for the date, beating a mark set in 1923, according to the National Weather Service.
Natural gas prices are collapsing as mild weather dims the prospect of erasing a stockpile surplus that’s the biggest for the time of year since 2012. Supply from shale formations in the U.S. East has overwhelmed demand for the heating fuel, prompting analysts including Credit Suisse Group AG and Energy Aspects Ltd. to cut their 2016 price estimates.
“The forecasts are looking even warmer,” said Gene McGillian, a senior analyst and broker at Tradition Energy in Stamford, Connecticut. “There’s a lot of gas in storage, and production levels are still healthy. Without a turnaround in the weather, there’s not much to halt this kind of price slide.”
Read more: http://www.bloomberg.com/news/articles/2015-12-14/u-s-gas-slumps-to-10-year-low-as-forecasts-keep-getting-warmer
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