- After plunging earlier this month, Henry Hub natural gas futures fell below $3/mmBtu this morning - their lowest levels since Sep. 2012 - before slightly rebounding. January futures are now right at $3.00/mmBtu.
- Still-growing production and a relatively warm December have been taking a toll. Analyst Aaron Calder: "This market continues to look oversupplied ... We are seeing support at $3 but I would say that once we break that I think $2.70 is probably our lower technical target." He thinks low prices will eventually "provide some sort of floor," as electricity production shifts to gas from coal, but adds recent EIA inventory data suggests "it's going to be a while coming."
- BNP Paribas expects inventories to hit a new high of more than 4T cubic feet by the end of Oct. 2015. The firm has cut its 2015 average gas price forecast by $0.15 to $3.60/mmBtu.
- ETFs: UNG, DGAZ, UGAZ, BOIL, GAZ, FCG, GASL, KOLD, UNL, NAGS, DCNG