OK... I give up. What's the bottom price for natural gas and when will it hit. I read a lot of articles about the natural gas comeback... including the Haynesville. But the price keeps dropping and more flares are spotted by satellites. I'm thinking price will continue to drop through September unless the storage report shows we won't be meeting supply demands for winter. thanks, jhh.
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.