This page has been archived and commenting is disabled.
NatGas Crashes To April 2012 Lows On Weather, Inventories
For once, blaming the weather is not a 'joke'. Natural gas futures fell 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.
Carnage...
To April 2012 lows...
As Bloomberg details
The eastern U.S. may be warmer than usual from Nov. 1 to Nov. 10, according to Commodity Weather Group. Washington might reach 74 degrees Fahrenheit (23 Celsius) on Nov. 5, 12 degrees above normal, AccuWeather data show. The city’s low on that day could be 54 degrees, 10 above normal.
Stockpiles totaled 3.81 trillion cubic feet Oct. 16, 4.5 percent above the 5-year average, according to a government report. BofA 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.”
More unequivocally good news for American consumers (oh wait).
Charts: Bloomberg
- 10563 reads
- Printer-friendly version
- Send to friend
- advertisements -




What about propane ?
Should drop in line w/natural gas.
Could this be also be due in part to the Glencore + Sumitomo unwinds that are happening?
"For once, blaming the weather is not a 'joke'."
How's the "algo" weather....?
I am sure this all has nothing to do with sticking it to Russia, Venezuela, Bolivia or anyone else who "dares" to compete with the "empire".
If you've got a good track record of making money in Nat. Gas (sorry, ripping/stealing off clients doesn't count), then you're one hell of a trader because that market is mental.
I tried trading the energy complex over the summer...huge mistake, one I do not intend to replicate.
fucking contango makes natty a continuous short. everyone is on the wrong side of the boat.
Look for Gazprom to cut off gas supplies to Ukraine in early 2016.
A low low price and Crimea no longer crucially dependent on Ukraine for electricity and one or other Force Majeure reason to cut off supply looms.
And the fact that we no longer need fossil fuels for energy.
Research: Keshe KFSSI Blueprint Teaching
The total usable storage in the US is around 4.1 trillion cubic square feet, so that's also being factored in as we bump up near that level. I notice that when the price bottomed in April of 2012 at around $1.93/MMBTU, it bounced hard (like over 40% the following 4 weeks), so word to the wise...
a number of manufacturing processes use nat gas. With manufacturign down, I would think that economic activity decline has something to do with this, especially at the margin and when storage tanks fill up.
Your absolutely correct, for example it is the primary consumable in the production of nitrogen fertilizer. Fertilizer demand is down as farmers have to accommodate tighter budgets thanks to falling grain prices. Thank god they have all those gas/diesel savings to help them survive... sarc/
Wall St traders shocked and outraged about something happening which helps Main St.
God damn weather! This is an odd case where it really is a weather thing. El Nino years are nice and warm :D
As far as the consumer is concerned, this is certainly not important. In fact, its IRRELEVANT. Natural gas prices for the consumer AS A WHOLE (some fuckwit will always point out an exception to the rule), from their gas provider go up. They never come down.
Propane is different. It fluctuates a lot because of the way its delivered. Natural gas companies are infinitely more regulated and they have to get increases through corporation commissions. Just do a google search and you will find plenty of NG utilities filing for rate increases this past summer.
The monthly bill in my area now is $30 a month with ZERO usage and skyrockets from there with any usage and for the winter; prepare to get a bank loan. Which is why I'm converting to electric whenever practical.