How Low Will it Go? Traders Say NatGas Price Will Hit 20-Year Low

Two days ago we highlighted stories about the price of natural gas, noting it had hit a 14-year low (see Natural Gas Prices Hits 14-Year Low – When Will it Rebound?). On Monday the CME price (the price for futures contracts based on the Henry Hub price) closed at $1.89/Mcf (Mcf is thousand cubic feet, the equivalent of MMBtu, or one million British thermal units which the price is often quoted in). Yesterday the price closed at $1.79/Mcf. Just how low will the price go? A number of traders now believe it may hit $1.60/Mcf, which would represent a 20-year low. Some are saying it may hit (gasp) $1.50/Mcf. A lot of the “blame” for the historic low price of natgas is the prolific output from the Marcellus/Utica…

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