Replies to This Discussion

Permalink Reply by tc on January 22, 2015 at 0:56

What optimism?  The market is just saying that next winter, could be a normal winter for temperatures and that mid 3's is the high price point for the next 2 years.  The futures are also saying that despite all the hype about LNGs that the price of NG won't go over $4 until January of 2020.

• ▶ Reply

Permalink Reply by Jesse Joyner on January 22, 2015 at 3:44

NG futures are widow-makers. Wild gyrations. Such charted snapshots mean little. The betting swings up and down on weather and innuendo. Speculators. Wait a couple of weeks, and if the lower 48 continues to have a soft winter, then NG might drop like a rock. Could happen. The monthly forward pricing isn't stable and can rocket up or down on mis-info. Conversely, if the commodity gamblers smell lower NG production coming down the pike per the oil glut causing rigs to lay down en mass, with NG production showing signs of dropping to much lower levels by 2016 from an oil basin capex pullback, look for higher NG bets to be priced into the forward charts. So in six months, NG pricing can surprise either up, down, or stuck in the mud.  

• ▶ Reply

Permalink Reply by CB on January 22, 2015 at 9:09

Mild winter like this one $2.75.

• ▶ Reply

Permalink Reply by DellP on January 23, 2015 at 6:30

I'm fairly newbie to the game, issues, but it looks like the US originally
had high hopes for gas, that the US might become energy independent
with it.  Many utility companies already converted to gas. Many
government heavy trucks now running on gas. The cost savings certainly
makes it tempting. QE, economic stimulation, jobs, politics...

The Shale Gas Boom Transforming Global Energy Markets
https://www.youtube.com/watch?v=8Kj35AT_ONM

 

• ▶ Reply