Have Natural Gas prices bottomed?
Will Natural Gas prices start trending up? Please state your opinion and why. Thanks!
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.
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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.
References :