|Natural Gas spot price|
One would presume that with spot prices so low, production would be curtailed and bring the supply and demand back into balance. This may not happen fast enough. Even with very low spot prices production is still higher than last year. Couple this with already higher than average inventory numbers inventory and you have falling spot prices.
|Nat gas production still high|
Right now the injection rate for 2012 can be ~33% lower than previous years to completely fill up inventory by the middle of November.
Disclosure: short UNG