Natural Gas Price Rally May Benefit Buyers

Natural gas price rallies also create market jitters and the one that started in early September is no different.  Natural gas buyers who were sitting on their hands are now panicking about what to do and asking the following questions.  Was an opportunity missed?  Will prices fall again?  How high will this rally go?  How long will this rally last?

“The market was ripe for a price rally and seasonally, natural gas prices do tend to rally in the 4th quarter,” says Valerie Wood, President of Energy Solutions, Inc.  “No market can go straight down, but that’s what natural gas had been doing since spring.  Buyers seemed to be patient during the multi-month decline, but now they need to try to be patient during this multi-month rally.”

Energy Solutions, Inc. publishes a monthly newsletter, The Advisor, which is specifically written for businesses as an educational tool and guide to help natural gas buyers through these difficult buying decisions.  In its most recent October edition, Wood identifies exactly why this recent rally could actually benefit buyers. 

“The price rally is giving producers an opportunity to hedge their 2010 production.  It is also reducing the incentive for producers to shut-in natural gas supplies,” says Wood.  “These are positive events for buyers.  Basically, for buyers, it’s short-term pain for long-term gain.”  Request a complimentary copy of the October edition of The Advisor or simply send an e-mail to request-oct-pr9@energysolutionsinc.com or call (608) 848-9859. 

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About Energy Solutions, Inc.

Formed in 1996, Energy Solutions, Inc. is independently owned. With more than 25 years of experience in the natural gas industry, our team focuses on natural gas prices and in helping businesses improve their internal processes for the purchase of natural gas.