News / Business
Natural Gas Prices Reflecting Robust Production Levels
Natural gas prices are dismissing colder weather and higher than average storage withdrawals and instead looking ahead .. and the picture at this time is quite bearish.
To the surprise of many, natural gas NYMEX prices fell following a 190 Bcf storage withdrawal announcement yesterday even though this storage report virtually eliminated the year-on-year storage surplus. In fact, the market doesn’t seem to care about this higher storage withdrawal or even the below-normal temperatures forecasted for the southeastern part of the nation into March.
“It’s important for buyers to recognize just how bearish the market is right now,” says Valerie Wood, President of Energy Solutions, Inc. “Production levels have fallen by less than 1 percent from last year’s levels, even though the natural gas drilling rig count has been cut in half. Increased efficiencies, lower service costs, and new technologies have made the natural gas marketplace entirely different from the one that existed two years ago.”
The million-dollar question is what is the definition of bearish? Is it $5 per MMBtu, $4 per MMBtu or even lower? The answer to that question can be found in Natural Gas Pricing Outlook, a 35+ page, comprehensive analysis that provides natural gas buyers with the information they need to make informed purchasing decisions for 2010 and 2011.
Reserve your copy of Natural Gas Pricing Outlook today by visiting http://www.naturalgasoutlook.com/.
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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.
