IMO we could see NG go down to $1.50/mcf this summer. Stay heavily weighted to oil. - Dan
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NEW YORK (AP) -- The price of natural gas has dropped to $2 for the first time in more than a decade.
Gas briefly touched $2 before heading back up to $2.009 per 1,000 cubic feet Wednesday afternoon.
The last time natural gas touched $2 was Jan. 28, 2002, as it dropped to $1.91.
Natural gas prices have been tumbling all year. A mild winter and a production boom have left the U.S. with more natural gas than Americans can consume. The glut has pushed prices down by 59 percent since a peak last summer at $4.85.
The excess gas has benefited homeowners and businesses that use it to heat homes and power factories.
And with so much in supply, natural gas should remain cheap during the summer, barring an unexpected heat wave, analysts say.
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Natural Gas: Going lower
Natural Gas: Going lower
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Natural Gas: Going lower
Read this.
http://business.financialpost.com/2012/ ... -year-low/
Eventually, we will get back into natural gas stocks. Several of our current Sweet 16 produce a lot of gas but we hold them because they also produce a lot of liquids and they are focused on liquids.
My take is that NG prices will stay very low all year. Prices this low make most dry gas plays sub-economic. Rigs will leave those plays in droves and move to the oil and NGL prospects (which still produce a lot of gas). The drillers are going to be fine. In fact, I think they will report results much better than Wall Street is expecting from them. Getting familiar with our Drillers Watch List could be quite profitable during the second half of this year.
http://business.financialpost.com/2012/ ... -year-low/
Eventually, we will get back into natural gas stocks. Several of our current Sweet 16 produce a lot of gas but we hold them because they also produce a lot of liquids and they are focused on liquids.
My take is that NG prices will stay very low all year. Prices this low make most dry gas plays sub-economic. Rigs will leave those plays in droves and move to the oil and NGL prospects (which still produce a lot of gas). The drillers are going to be fine. In fact, I think they will report results much better than Wall Street is expecting from them. Getting familiar with our Drillers Watch List could be quite profitable during the second half of this year.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group