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Why Are Natural Gas Prices Crashing?
Shrugging off low levels of storage, natural gas prices have continued to plunge. The U.S. entered this past winter with natural gas supplies at a 15-year low. Paltry levels of gas in storage, just ahead of the peak winter demand season, pushed prices up to the highest level in four years. A cold snap in November led to a jump of around 30 percent in a week, an increase so fast and so quick that it forced at least one trading firm out of business. By mid-November, prices had climbed as high as $4.80/MMBtu. Worryingly, the rest of winter still lay ahead. Gas supplies in storage were at their lowest levels in a decade ... (full story)