Natural Gas Futures at Two-Year Low on Mild Weather

Natural Gas futures have fallen to lows not seen in two-years with mild weather and record production set to expand an already stockpile surplus. Natural Gas futures settled yesterday near $3.16 at the New York Mercantile Exchange yesterday.

At this time, natural gas futures happens to be the worst performing market that makes up the 22 commodity futures markets in the Bloomberg Commodity Index as this futures market has dropped 9% only yesterday. Government data shows natural gas stockpiles 47B more than this time last year and actually “higher” than levels this time last year (not seen since January 2012).

With the anticipation of a cold winter boosting demand for natural gas waning, this market has yet to find a bottom,” said Kevin Riordan, director of research at Capital Trading Group in Chicago, sharing his fundamental analysis insight regarding the current natural gas futures situation. Riordan added, The weather models now are confirming speculators outlook for demand.”

After yesterday’s breakout lower, natural gas futures trend is down with no bottom yet in sight. Natural gas futures is a market I do not trade, but it is nice to know as consumers we should not be hit in the wallet like previous years – we’re pocketing even more of our earnings with another down-trending market.

ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.