Robust output from the nation's shale plays and relatively mild winter weather again are forcing energy analysts to trim their natural gas price forecasts. Bentek Energy LLC last week said it expects the market to set a new price floor of $1.94/Mcf this September.
Mild weather across the United States has left record-high natural gas inventories in storage even as production levels continue to climb, assuming normal summer demand, storage levels could reach 4.3 Tcf by the end of October, according to Bentek analysts.
"The natural gas market is poised to find a new, near-term price floor in 2012, with Henry Hub cash and other supply-area prices bound for $1 handles as early as later winter as mild weather has exacerbated an oversupplied market," Bentek said.
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