Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Natural Gas Continues Its Slide

Natural Gas Continues Its SlideIt looks like déjà vu all over again for natural gas traders, as the coming winter has already had a mild start. With warmer than usual temperatures thus far in December, NG has taken a hit even though it has been looking to recover from last year’s winter, which wreaked havoc on prices. It started with a warm forecast for the first 10 days of December, but the warm weather has stuck around and seems to be persisting for the month [for more natural gas news and analysis subscribe to our free newsletter].

“Recent data from Weather Derivatives show that heating demand will be 34 percent below average for the 48 contiguous states from Dec. 4 through Dec. 8. The forecast for lower demand has seen prices for natural gas fall 5.2 percent in the past week,” writes Marketwire.

Thus far in 2012, natural gas is down over 20% despite making a massive rally during the summer. While it may not be ideal for long-term investors, traders have been all over NG instruments like the United States Natural Gas Fund, LP (NYSEARCA:UNG) as its volatile price movements have been perfect for short-term positioning. Still, the majority of the market would like to see some normalcy returned to NG markets in the coming year [see also UNG’s Woes Visualized].

The only silver lining for NG is the fact that the coming winter as a whole is predicted to be much colder than last year, leaving room for this fossil fuel to make a run. If temperatures were even to drop to average levels, there is a good chance that prices will soar as demand will have already done the same. So while this energy commodity may be looking bleak for now, there are certainly opportunities on the horizon. Keep an eye on NG in the coming weeks as forecasts and inventory reports will be especially crucial to its movements.

This article was originally written by Jared Cummans, and posted on CommodityHQ.