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What's behind the low US natural gas prices?

Demand has increased this year, but it is nowhere near large enough to soak up the extra supplies - instead the storage keeps filling up and the output keeps growing

Years of low natural gas prices in the US have done little to slow the shale-gas juggernaut. Producers are pumping gas at a record rate. Demand has picked up this year, but has been nowhere near strong enough to soak up the extra supplies. As a result, storage is piling up, and could be headed for an all-time high this winter. The result: prices could stay below $3.00/m Btu for the remainder of this year and there is little sign of a recovery on the horizon. The Henry Hub benchmark gas price averaged just $2.81/m Btu through August this year. And hubs around the prolific Marcellus have been trading much lower at less than $2.00/m Btu. In contrast to the roller-coaster ride that oil prices h

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