By Matt Egan – Re-Blogged From http://money.cnn.com
Apparently, a godzilla is destroying the natural gas market.
Don’t worry, there isn’t a giant sea monster preparing an attack. Rather, predictions of an extremely warm winter — driven by what meteorologists have dubbed a “Godzilla” El Nino — have caused natural gas prices to plummet dramatically.
Natural gas prices tumbled 9% on Monday to three-and-a-half year lows. They’re already down 18% in October and nearly one-third so far this year.
Meteorologists are predicting the unseasonably warm fall temperatures to continue into the winter, which would diminish demand for natural gas to heat homes and businesses.
“A warm winter is the last thing this market needs,” Bank of America Merrill Lynch commodity strategist Sabine Schels wrote in a research report.
Schels believes a mild winter is a “big risk” and could cause a “gas glut” in the coming months.