Saturday, November 19, 2011

Today's Major Market Move: Natural Gas Futures Decline 7.4% for the Week

While WTI Crude Futures have been on a strong run recently (which we last talked about here), Natural Gas Futures on the other hand have been plumbing the lows of 2011. Front month contracts declined 7.4% last week, making it the worst performing commodity of the ones we track.

Click here to go to the live table.

The reason for the most recent decline was the release of data indicating that U.S. natural gas storage is at record levels. Some more commentary from the Calgary Herald:
Storage is near capacity on both sides of the border, with Canadian inventories 96 per cent full, boding well for consumers but not for producers, say analysts.

"The outlook for natural gas is not getting any rosier," said Chad Friess, analyst with UBS Securities. "It may stay depressed over the mid-term until it can get more outlets for supply."
Here's the current line chart for 2011. Prices just broke through the 2011 lows and are on their way to approaching sub 3.00 levels.

Click here to go to the live chart.

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