2015.10.2621:46:47UTC+00Natural gas hits lowest since April 2012 on mild weather

Natural gas touched its lowest since April 2012 as traders reacted to close to record inventories and mild weather, pushing back the beginning of demand for the fuel.

Stockpiles totaled 3.81 trillion cubic feet as of October 16, 4.5% higher than the five-year average, based on a government report. The Commodity Weather Group said the eastern US may be warmer than usual from November 1 to 10.

Natural gas for November delivery settled at $2.062 per million British thermal units, down 9.8%, on the New York Mercantile Exchange. Futures hit $2.05 in the largest intraday decline since February 2014.

The pressure lingers due to storage situation and mild weather. It has gotten the attention of many investors “suddenly just how oversupplied we are,” said John Kilduff, Partner at Again Capital LLC.

Gas futures have plunged four days in a row and 18% this month.