Natural gas demand rises as prices increase as well - "$4.50 through 2011"
U.S. natural gas prices may rise above $4.50 per million Britishthermal units in the spot market this winter and stay at that level
through 2011, the Energy Information Administration said.
The EIA expects natural gas demand by the end of the year to be 4
percent higher than it was in late 2009, Richard Newell, the
agency's administrator, said today in Washington.
Prices are "notoriously difficult to forecast," Newell said.
There is "about a one-in-three chance" that Henry Hub natural gas
prices in January will be either below $3.60 or above $5 per million
Btu.
"One of the key factors there will be weather ..." Newell said.
Originally published by Staff and Wire Reports.
(c) 2010 Tulsa World. Provided by ProQuest LLC. All rights Reserved.
Views: 48
Replies to This Discussion
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landownerPermalink Reply by adubu on -
The statement that is very true in the above article is NG prices are "notoriously difficult to forecast" and of course the big 3 varibles are demand, supply, and weather. I think you will see increase in prices begining 2012 when supply decreases because rigs will lay down in mid- 2011 when the drilling presently is simply one well per unit to HBP their expensive leases from 3 years ago is completed. IMO to add my 2 cents to " prices notoriousl difficult to forecast"
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landownerPermalink Reply by j garrett on -
I posted this when I saw NG went from $3.29 to over $4 in seemingly one day. Currently at $4.12 during this post.
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landownerPermalink Reply by adubu on -
j garrett-- prices in future maket simple roll from the Nov contract to the Dec contract last week reason for increase as you stated above; however the spot price on Henry Hub is still in the $3.35 range will slowly raise to future price late Nov.
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landownerPermalink Reply by j garrett on -
Yeah I realized that. I think Keith's "Energies Monitor" changed from Henry Hub to Futures prices. Seems it used to show the daily price, not the futures price.
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Permalink Reply by Parkdota on
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I'll take a 4% increase in natgas demand over 2009. However, weather forecasts show a less severe fall/winter than 09' so I wonder if they took that in to account?
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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on -
Unless we're in for another ice age, weather-related seasonal price spikes should not move the price far or for long.
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Permalink Reply by Gale on
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I always pray for extremely cold winter and very hot summers it totally drives the price. Back in 1994 on the east coast they had a terrible terrible winter so cold they ran out of NG we got $15 that winter and that was 1994 so it can happen
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landownerPermalink Reply by P.G. on -
It's already over $10 at centerpoint and winter hasn't even started!
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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on -
Past examples of seasonal price spikes did not occur in periods of extreme over supply. We are awash in natural gas. What Centerpointe charges you on your bill is not the price that producers and royalty owners get at the well head.
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