January natural gas prices registered a new contract low this morning and fell to their lowest level since September 2009. Some traders indicated that the primary factors driving prices lower were near-record supplies and a warmer than expected December temperatures in the US. The unseasonably warm temperatures is a force depressing heat-related demand for natural gas and makes it more difficult to work down excessive supplies. Expectations for this morning's EIA storage report are for a draw in the range of 95 bcf, which is quite a bit smaller than the year ago decline of 154 bcf.
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