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...
[5]
To April 2012 lows...
[6]
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
