Oil & gas prices

[dan_s]

From PLS on 5/3:

"After HH Spot (natural gas) hit $1.82 on April 20th, prices have bounced over 25% based on cooler weather, actual production declines and other factors. Meanwhile, despite high storage levels, oil remains north of $100 with one bank, Credit Suisse, saying that dips below $100 are buying opportunities."

Good news for natural gas is that we are starting to see some production declines from the decline in drilling in the dry gas areas. I am still bearish on natural gas until I see the gas going into storage start to decline. I still think we could see gas decline sharply in August & September. We sure need a cold winter this time around.

I doubt we will see WTI crude oil dip below $100/bbl. I look for demand to increase as we move into the summer driving season. Obviously, an conflict with Iran sends oil prices through the roof.

[dan_s]

May 4 (Reuters) - Brent crude futures fell more than $2 on Friday after data showed fewer U.S. jobs were created in April than had been expected, adding to concerns about a slowing economy.

Brent June crude fell $1.94 to $114.14 a barrel by 9:20 a.m. EDT (1320 GMT), having fallen to $113.94, just above the 200-day moving average of $113.67, after reaching $116.29.