Natural gas climbs to highest since July 2011 on record supply drop

|By:, SA News Editor

Natural gas futures today reached their highest levels in nearly two-a-half years as data showed a record drop in U.S. inventories.

Stocks are 7.4% below the five-year average for this time of year, an EIA analyst says, likely the largest deficit to historical level on EIA's records which began in 1994.

Traders are setting their sights on $5/mm Btu gas, last seen in June 2010, but any significant warming trend could send prices down, and gas production is expected to begin hitting record levels as more supplies come on line from Marcellus shale gas fields.

ETFs: UNG, UGAZ, GAZ, BOIL, DGAZ, UNL, KOLD, NAGS, GASZ, DCNG