At a time when most of the commodities are hovering at the peak levels including metals and gold, Natural Gas seems to be running out of fuel as the prices of the energy product has slipped into the tightest range in past eight years, as US output is seen hitting highest levels in past 37 years.
Improved production outlook in the US and increased inventories have pushed the prices to the record low levels.
The US natural gas inventories have risen to 3.726 trillion cubic feet, which is closer to the last year s record 3.837 trillion cubic feet. This calls for a steep price cut in Gas prices that have already remained in a tight spot between USD 3.545 and USD 6.108 per million British thermal units (mBtu) this year.
Industry analysts expect US natural gas production to reach the highest levels in 37 years and the prces could average at USD 4.35 mBtu in the fourth quarter this year, a Bloomberg report noted.
On the commexes, Natural gas for November delivery on NYMEX fell 3.9 cents, or 1.1%, to settle at USD 3.657 per mBtu yesterday.
The prices have averaged at USD 4.235 in the third quarter, down 2.6% from the previous quarter, while the first-quarter average was USD 4.989, up 1.3%.
A Bloomberg report noted that companies have increased drilling of so-called unconventional gas, according to Baker Hughes Inc. The number of horizontal rigs, which are mostly used in shale-gas drilling, rose to a record 929 in the week ended Oct. 8, the Houston-based oil and gas field services provider said last week.
The US Energy Department maintained that gas output in the US will average 61.29 billion cubic feet per day this year, which will be 2.2 percent higher than last year and the highest since 1973.
Meanwhile, the department also noted that The increase in the natural gas-directed drilling rig count since mid-2009, comprised of a growing share of natural gas-directed horizontal drilling rigs in the lower 48 states, contributed to the production growth in 2010.
Improved production outlook in the US and increased inventories have pushed the prices to the record low levels.
The US natural gas inventories have risen to 3.726 trillion cubic feet, which is closer to the last year s record 3.837 trillion cubic feet. This calls for a steep price cut in Gas prices that have already remained in a tight spot between USD 3.545 and USD 6.108 per million British thermal units (mBtu) this year.
Industry analysts expect US natural gas production to reach the highest levels in 37 years and the prces could average at USD 4.35 mBtu in the fourth quarter this year, a Bloomberg report noted.
On the commexes, Natural gas for November delivery on NYMEX fell 3.9 cents, or 1.1%, to settle at USD 3.657 per mBtu yesterday.
The prices have averaged at USD 4.235 in the third quarter, down 2.6% from the previous quarter, while the first-quarter average was USD 4.989, up 1.3%.
A Bloomberg report noted that companies have increased drilling of so-called unconventional gas, according to Baker Hughes Inc. The number of horizontal rigs, which are mostly used in shale-gas drilling, rose to a record 929 in the week ended Oct. 8, the Houston-based oil and gas field services provider said last week.
The US Energy Department maintained that gas output in the US will average 61.29 billion cubic feet per day this year, which will be 2.2 percent higher than last year and the highest since 1973.
Meanwhile, the department also noted that The increase in the natural gas-directed drilling rig count since mid-2009, comprised of a growing share of natural gas-directed horizontal drilling rigs in the lower 48 states, contributed to the production growth in 2010.
