Will Natural Gas prices start trending up? Please state your opinion and why. Thanks!
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on Tuesday, November 10th, 2009 at 5:42 am and is filed under Natural Gas.
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2 Responses to “Have Natural Gas prices bottomed?”
With natural gas around $4.80 you would think so. But somehow I doubt it. All withdrawals from storage have been below estimates this year. We are in the dead of winter. We are in a recession and no telling how long it will last. Unemployment will probably rise more and industrial demand for natural gas will probably decline. A major pipeline, the Rockies Express, is about to be completed in the upper midwest so available supply will increase to a major market at a time of declining demand. And the high prices of the past few years have brought large supplies of natural gas. I dont think oil prices have bottomed yet, (both often come from the same well) so I doubt that natural gas prices have either.
This cold snap should be a blessing for natural gas prices. But over the long term we will probably have to wait and see if the economy ever comes out of the tail spin.
November 10th, 2009 at 5:42 am
With natural gas around $4.80 you would think so. But somehow I doubt it. All withdrawals from storage have been below estimates this year. We are in the dead of winter. We are in a recession and no telling how long it will last. Unemployment will probably rise more and industrial demand for natural gas will probably decline. A major pipeline, the Rockies Express, is about to be completed in the upper midwest so available supply will increase to a major market at a time of declining demand. And the high prices of the past few years have brought large supplies of natural gas. I dont think oil prices have bottomed yet, (both often come from the same well) so I doubt that natural gas prices have either.
November 10th, 2009 at 5:42 am
This cold snap should be a blessing for natural gas prices. But over the long term we will probably have to wait and see if the economy ever comes out of the tail spin.