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Permalink Reply by Skip Peel - Mineral Consultant on October 9, 2014 at 2:48

The 2014 monthly settlement prices (the ones that count the most) show a firming price trend that is positive.  If November and December prices increase along the lines of previous years the average price for 2014 could very well be over $4.50.  The average only has to be $4.40 to be the best year since 2010.  Stable prices allow industries to make long term decisions to use more nat gas.  As demand increases operators are better position to make a higher margin after years of low prices have placed a premium on driving down the cost to produce an mcf.  As demand grows prices should rise some but if the days of $6 plus return too quickly it will remove much of the incentive for end users to invest in converting to nat gas.

http://gsfi.net/common/NYMEXSettlementHistory.pdf

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