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Natural gas tanks to 2014 lows

FXStreet (Mumbai) - Natural gas prices are trading at 2014 lows as the rising stockpiles pressurized prices ahead of the peak season of winter.

Natural Gas for November delivery is trading 2.40% lower today at USD 3.676/mmbtu. Moreover, a record production boom has replenished the stockpiles, which had hit their lowest since 2003 during last year’s epic cold weather. However, such extreme weather conditions are not not expected this year. As per MDA weather services, The Midwest and Southeast will likely see below-normal temperatures, but that will produce only the eighth-coldest winter since 2000, according to a forecast by MDA Weather Services.

Moreover, warm weather and strong production will make sure that stockpiles continue to rise past Nov 1, when demand usually outstrips supply. Thus markets have turned bearish over the commodity. As Commodity Futures Trading Commission data, speculators have reduced their net long positions to the lowest since early August.

Natural Gas Technical levels

Natural Gas an immediate resistance of 3.725 (July low), above which prices can rally to 3.76 levels. Meanwhile, the commodity can fall to 3.5 levels if the prices fail to sustain at current levels.

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