Natural Gas Plunges Amid Ample Supply
By: The natural gas market didn't attract buyers after nearing a 10-month high this morning, and futures fell sharply through some key support levels.
Although the weather is forecast to be a little cooler next week, there is still ample natural gas in storage for the winter and traders say the recent rally became overextended. Natural gas falling through $3.50 to $3.55 prompted more selling.
November natural gas plunged nearly 5 percent to settle at $3.45 per million BTUs. Meanwhile, November WTI oil futures, which expire Monday after the close, finished down over 1.5 percent at $88.73, the lowest settlement price since October 3. December WTI futures actually finished slightly below level at $88.65. (Read More: Get Oil and Natural Gas Prices Here)
U.S. oil futures have fallen to the lower end of the recent $88 to $92 trading range as November WTI futures expire. WTI futures fell 2 percent into the close of floor trading to $88.20 intraday low as traders assess the restart of TransCanada's Keystone pipeline and abundant U.S. supplies.
U.S. oil production is at a 16-year high and the market has shrugged Mideast tensions and global supply risks.
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