Natural Gas Prices could surprise to the upside
Posted: Wed Jun 22, 2016 5:52 pm
I spoke about the U.S. natural gas market at Wednesday's EPG luncheon in Houston. The gas market has tightened over the last two months and I believe it will get a LOT TIGHTER before the next winter heating season begin. The slides I spoke from will be posted to the EPG website this evening. To view them from the website you must log on (this stuff is for members only) and then click on Luncheon Presentations and Specials.
Read this first.
One analyst, Bernadette Johnson, managing partner of Denver-based Ponderosa Advisors LLC, noted that natural gas production volumes were starting to fall. Dry gas production volumes nationwide have fallen from 73 billion cubic feet per day to a little over 70.5 billion cubic feet over the past few months.
"We're seeing some declines," Johnson said.
Lowered rig counts and a cold winter could send prices above $4 per thousand cubic feet of natural gas next year, according to Ponderosa Advisors' forecast. Natural gas prices could also be constrained if the oil market recovers. The Henry Hub Natural Gas Spot Price for the week ending June 15 was $2.62, according to the U.S. Energy Information Administration. "We think prices could be over $4 next year. A lot of people think we're crazy," she said.
Q1 2017 NYMEX contracts for gas are already trading over $3.30/mmbtu.
Full article: http://www.bizjournals.com/pittsburgh/n ... ?ana=yahoo
Read this first.
One analyst, Bernadette Johnson, managing partner of Denver-based Ponderosa Advisors LLC, noted that natural gas production volumes were starting to fall. Dry gas production volumes nationwide have fallen from 73 billion cubic feet per day to a little over 70.5 billion cubic feet over the past few months.
"We're seeing some declines," Johnson said.
Lowered rig counts and a cold winter could send prices above $4 per thousand cubic feet of natural gas next year, according to Ponderosa Advisors' forecast. Natural gas prices could also be constrained if the oil market recovers. The Henry Hub Natural Gas Spot Price for the week ending June 15 was $2.62, according to the U.S. Energy Information Administration. "We think prices could be over $4 next year. A lot of people think we're crazy," she said.
Q1 2017 NYMEX contracts for gas are already trading over $3.30/mmbtu.
Full article: http://www.bizjournals.com/pittsburgh/n ... ?ana=yahoo