Bulls are leaving natural gas in the dust after prices slipped below $4 for the first time since December, reports Bloomberg. Power plant production also fell to a 13-year seasonal low while bets on rising prices decreased by 11 percent in the week ending July 22. According to the U.S. Commodity Futures Trading Commission, bullish wagers have fallen 51 percent since February.
Breanne Dougherty, a natural gas analyst at Societe General SA in New York, said in a phone interview with Bloomberg, "The move down in prices this early in the summer is surprising. The power generation load makes and breaks summers and it's extremely sensitive to weather."
Natural gas futures closed Friday's session down by 1.64 percent, or 6.3 cents, to settle at $3.787, reports Investing.com. It was likely that futures would find support at $3.682 per million British thermal units. This is its lowest from November 22 and it highest resistance, at $3.868, from July 25.
Natural gases' most prominent consumers decreased by 11 percent in the week ended July 19 from a year earlier to the least for the period since 2001, according to the Edison Electric Institute.
Last week, Nymex natural gas prices were down 4.3 percent, or 17.0 cents, the sixth straight weekly decline.
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