Surging supplies send natural gas prices down  A surge in natural gas production in the U.S. is driving down prices and prompting many investors and analysts to place bearish bets on the fossil fuel.


Hydraulic fracturing, more commonly known as "fracking," has become increasingly common in the U.S. over the past few years. The natural gas extraction technique has enabled drilling companies to remove natural gas from shale formations located thousands of feet beneath the earth's surface.

The U.S. has quickly become the world's biggest producer of natural gas, and that has fueled plummeting natural gas prices. Bloomberg reports that hedge funds have turned bearish on U.S. natural gas for the first time in eight weeks, as a surplus of the commodity and mild winter temperatures have driven prices down precipitously.

Many analysts and hedge funds are now betting that natural gas prices will fall over the coming months, citing such data. Natural gas sourcing has become exceptionally simple for many companies, as supplies have surged and prices have dropped on slumping demand, experts say.

On the New York Mercantile Exchange last week, natural gas for February 2012 delivery declined by 1.00 percent, closing at $2.55 per million BTUs.

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