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Permalink Reply by Skip Peel - Mineral Consultant on May 30, 2013 at 5:12

NYMEX Natural Gas Monthly Settlement Price for June - $4.148.

http://www.google.com/url?sa=t&rct=j&q=&esrc=s&sour...

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Permalink Reply by adubu on May 30, 2013 at 5:33

Happy to see almost $4 for 3 months in roll but will it hold?

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Permalink Reply by dbob on May 30, 2013 at 6:18

The big thing, IMHO, is that the build is roughly seasonal, and we look to have a reasonably hot summer.  I don't see gas staying below $4/mcf for any longer than a few days over the summer.

 

OTOH, people are started to get excited, and projects are moving forward.  There are still a lot of stacked rigs, and it won't take much to get some of them back drilling, keeping some type of lid on prices. 

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Permalink Reply by Skip Peel - Mineral Consultant on May 30, 2013 at 6:29

If the seasonal increase in price from June to July for the previous 4 years is a reasonable predictor (+~9%) then the July settlement price would be ~ $4.52.  Although that may be a bit of a stretch I wouldn't be surprised to see an increase of half that or ~$4.33.

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Permalink Reply by adubu on May 30, 2013 at 11:25

Skip--- I be happy with your prediction calculation----Prices and storage  look similar to late May 2011--- We need another Cold late extended Winter again like this year 2013.

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