Natural gas futures were clobbered Monday, falling nearly 10 percent as supplies rise toward record levels amid expectations that there will be a warm start to the winter.
The latest weather report showed mild weather across a wide section of the U.S. in the next two weeks, triggering a 9.8 percent plunge in the front-month natural gas contract. The futures ended the session at $2.06 MMBtu, a level last seen in 2012.
Analysts said adding to the volatility is the expiration of the November futures contract Wednesday.
"It's all coming out of the woodwork. The fundamental picture has been weak. It's shaking the market loose and overlapping this expiration cycle," said Gene McGillian, analyst at Tradition Energy.