Natural Gas
Posted: Tue Jul 24, 2012 8:49 pm
Recently I have been getting a lot of e-mails asking for my opinion on natural gas prices, so I thought I would post my view here.
My take is that natural gas prices will be range bound in the $3/mmbtu range for awhile. After this week the weather forecast is more normal and NG prices are being capped by coal prices. Then it is up to the weather (isn't it always). If a hurricane enters the Gulf of Mexico all bets are off. I don't see a major dip coming in Sept/Oct (which I did a couple months ago). A cold December should take gas to $4/mmbtu.
Let's say there are no shut-ins due to hurricanes, then I can see NG dipping back to $2.50-$2.70 before starting to move higher in November.
If the Feds announce QE3 then I think oil and gas will move higher.
My take is that natural gas prices will be range bound in the $3/mmbtu range for awhile. After this week the weather forecast is more normal and NG prices are being capped by coal prices. Then it is up to the weather (isn't it always). If a hurricane enters the Gulf of Mexico all bets are off. I don't see a major dip coming in Sept/Oct (which I did a couple months ago). A cold December should take gas to $4/mmbtu.
Let's say there are no shut-ins due to hurricanes, then I can see NG dipping back to $2.50-$2.70 before starting to move higher in November.
If the Feds announce QE3 then I think oil and gas will move higher.