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Natural Gas Prices At Lowest Level In 2 Years

The Wall Street Journal reports on the 27-month low for natural gas prices:

NEW YORK—Natural-gas futures fell in morning trading Friday to their lowest level in more than two years as forecasts for warmer weather in the coming days dashed hopes for increased demand.
Gas futures for January delivery fell as low as $3.084 a million British thermal units on the New York Mercantile Exchange, before recovering to trade up 2.1 cents $3.148. Natural-gas futures are now trading at their lowest level since Sept. 14, 2009.
ICAP analyst Drew Wozniak raised the question of whether—and when—futures might fall below $3, noting the price in the physical market already broke through the psychologically important benchmark Friday morning at the Henry Hub delivery point. “So there is a decent chance we’ll get there today by lunch,” he said in a note.

Increased domestic production – most notably in Pennsylvania’s Marcellus Shale formation – is also playing a major role in the low prices.

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