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From the Opalesque Team:

With markets and media buzzing over the unnamed hedge fund taking a large bet on natural gas prices tripling (Source, new interest is forming in a market that has slid significantly, reaching its lowest point in seven years.

The government stockpile report, released on Thursday by the US Energy Department showed that stockpiles of natural gas have reached a record, due to both an increase in production and a recession driven decrease in demand. The price level makes it likely producers will level off until there is a better supply/demand equilibrium.

For Tim Pickering, president and portfolio manager, at Canadian-based Auspice Capital Advisors the larger macro picture (rather than near-term expectations for hurricanes or a cold winter) is the effect that less drilling activity will have on the price of natural gas.

"A large storage overhang is the reality," Pickering told Brett Harris during an interview on Business Network News, adding that the oversupply is already priced into the market.

In addition to possible price increase as oversupply diminishes, the current market lows may reap benefits for the industry long-term. The New York Times reported industry executives are hopeful the slide in price will provide a boost as they try and convince government regulators overh......................

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