Natural Gas Price Forecast - Oct 15

[dan_s]

"Natural gas prices are too low, based on the primary bull-market drivers — demand exceeding supply and declining inventories. Our analysis of key U.S.-traded futures shows a strongly positive trend, with the ratio of demand vs. supply at its highest level in four years. Simultaneously, the annualized measure of inventories has peaked and is plunging rapidly. Conditions look similar to 2013-14, when natural gas averaged $4 MMBtu." - Bloomberg Intelligence

More from Bloomberg:

Vistra, NRG see winter wonderland in Boston, Dallas power prices
"With January power futures climbing 30% since May, big generators such as Vistra, NRG and Exelon are set to earn strong profit in two deregulated regions. New England prices and margins rose because of constrained pipeline capacity. In Texas, despite ample gas, margins rose steadily after Vistra shut down 4,000 megawatts of coal plants."

New England bills to soar on gas strategy
"Squeezed by its decisions not to build new natural gas pipelines, New England is bracing for the highest electric bills in four years, based on January power futures. With neighboring New York also imposing a de facto moratorium on shipping cheap Marcellus gas, the spread between Pennsylvania and New England January power prices has risen to $45 a megawatt-hour. Vistra, NRG, Dominion and Exelon hold the biggest positions in the Nepool generation market." - More proof that New York is run by idiots who really do not care for the "real people".