Natural gas plummets below $2 for first time since 2012

There seems to be no respite or relief rally for Natural gas, which is down for fifth consecutive day and broken below $2/mmbtu for first time since 2012.

Technically speaking, though crucial support lies around $1.85/mmbtu area, but it doesn't seem to be the end.

In last three days trading Natural gas price has fallen close to 18% and further decline might be on card before FED policy announcement tomorrow. Warmer than expected weather is likely to lead to lesser demand for Natural gas this winter in North America as storage is close to record.

Falling prices in Ngas along with oil is likely to deteriorate the outlook and credit rating of shale energy companies in US, who are struggling with their debt already.

If weather fails to support demand, Natural gas price is likely to deteriorate to as low as $1.5-1.4/mmbtu.

Natural gas price is currently at $1.97/mmbtu.