Energy Solutions, Inc. Expects Natural Gas Prices to Hit Annual Low in the Fall

Natural gas fundamentals are very similar to what they were last year at this time.  Last year in April 2009, Energy Solutions, Inc. predicted that natural gas prices would hit historical lows in the fall of the year.  In September 2009, the front-month natural gas contract on the New York Mercantile Exchange (NYMEX) fell to $2.409 per MMBtu, a seven-year low.  In its April edition of The Advisor, Energy Solutions, Inc. explains why 2010 natural gas prices are likely to follow a similar pattern as last year; however, it doesn’t expect prices to dip as low as they did in 2009.

“The timing is right for a second quarter rally,” says Valerie Wood, President of Energy Solutions, Inc.  “This rally is expected to get some help from the uncertainty surrounding the release of revised Energy Information Administration (EIA) 914 production data on April 30, 2010.  It is very possible that prices could rebound to $5-$6 per MMBtu, and that is why we’ve been recommending near-term natural gas purchases.  Longer-term, however, we expect a downtrend to resume taking natural gas prices to $3.25-$3.50 per MMBtu level by the fall of 2010.”

While the longer-term picture again calls for price weakness, Energy Solutions, Inc. warns that in the interim there are a number of price drivers that may push prices higher this summer, including above-normal hurricane activity, warmer than normal temperatures, coal-to-gas fuel switching, and the potential for the natural gas drilling rig count to turn south again.  “These factors are expected to keep prices from declining substantially over the next few months, but by the fall of 2010, there will be fewer unknowns and the reality that supply is continuing to outpace demand will again be the forefront,” says Wood.

For a limited time, natural gas buyers can learn more about Energy Solutions’ pricing outlook by purchasing Natural Gas Price Outlook for just $249.  With the purchase of this 40-page insightful publication, buyers will also receive a 3-month subscription to The Advisor, which will keep them apprised of ongoing natural gas price movements and buying recommendations, and access to Energy Solutions’ soon-to-be released Natural Gas Buying Templates, which will assist buyers in developing a longer-term risk management strategy.  For additional details on these products, visit www.NaturalGasOutlook.com or contact Kelly Gilboy at (608) 848-9589.

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About Energy Solutions, Inc.

Formed in 1996, Energy Solutions, Inc. is independently owned. With more than 50 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.