Natural gas prices drop to 2012 lows, below $2 per MMBtu

Natural gas prices plumbed their lowest levels since 2012 on a combination of negative demand and supply factors.

The price of gas dropped below $2 per MMBtu.

Last week, the Energy Information Administration, the US Department of Energy's statistical arm, said natural gas inventories rose by 81 Bcf (billion cubic feet) over the week ended on 16 October 16.

That marked the 29th straight weekly rise.

Compounding traders' woes, the latest meteorological estimates were indicating winter in the United States could be warmer than normal over the next couple of weeks. Mild conditions were forecast for the week ending 6 November.

On 23 October, in its weekly Commitment for Traders report the US CFTC said hedge funds had increased their bearish bets to 50,993 contracts compared to 18,754 long positions for the week that ended on 20 October.