Following relief among market participants that perhaps oil platforms in the Gulf of Mexico may not be as severely damaged as earlier thought, both crude oil and natural gas futures have sold off, reaching new lows today. Natural gas reached price lows today that were lower than those reached one year ago. This is an amazing downtrend considering that the price of natural gas has declined more than 40% since it's high of about $13.75 on July 4th!This could easily lead to additional fresh selling and a renewed downtrend. Additionally, unlike crude oil, new supplies of natural gas have been developed and are being brought online. This could also contribute to a bearish sentiment for the gas.
