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Production is slowing at current prices and rig counts are falling, while demand is surging as electric utilities switch to natgas from coal, said Shawn Hackett, president of Hackett Financial Advisors in Boynton Beach, Fla. In addition, trucks are converting from running on diesel to natgas to take advantage of the low prices, he said.
"My expectation is that the bear market is over and that a bull market will begin starting in the fall," Hackett said. He believes natgas bottomed in April at $1.97 per million BTUs and will consolidate sideways for several months and then break out.
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