It 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 .
“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
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