Strong Natural Gas Price Support Resides at $3.82 per MMBtu

In the natural gas industry, April is considered a shoulder month because there is little demand for heating or cooling needs.  However, there can be an increase in natural demand from the electric power sector as April is a time when nuclear plants are taken out of service for maintenance and during that time, there tends to be an increased emphasis on the use of natural gas fired-electric generation.  However, the overall fundamentals for natural gas are still bearish. 

“With adequate supplies and industrial demand still sluggish, it is difficult to envision a scenario where natural gas prices spiral out of control this summer,” says Valerie Wood, President of Energy Solutions, Inc.  “However, when prices hit key levels of support, a price rebound is more likely even if the fundamentals indicate otherwise.” 

In its most recently monthly edition of The Advisor, Wood points out that lower natural gas prices could prompt a second round of natural gas drilling rig cuts and that could impact market psychology.  She also warns that the downward revision in production data from the Energy Information Administration on April 30, 2010, could change the current bearish tone for natural gas prices.

“Even with natural gas prices at $4 per MMBtu, some buyers are hesitant because they remember prices last summer in the low- to mid-$3’s,” says Wood.  “However, two decades of experience in dealing with natural gas prices has taught us that market trends change when everyone least expects it.  Buyers may be hesitant at $4 per MMBtu, but then they tend to become willing buyers at $5-$6 because they panic.” 

Through The Advisor, a monthly and weekly natural gas publication, Energy Solutions, Inc. helps buyers deal with the changes and decisions in today’s volatile natural gas market.  A subscription to The Advisor is comprised of 12 monthly editions, 48 weekly editions, 18 editions of Fast Facts, and Pricing or Storm Alerts as conditions warrant.  For a limited time, Energy Solutions, Inc. is offering a three-month subscription to The Advisor for just $99.  “This is a great value and a cost effective way to see how The Advisor can save you both time and money,” says Wood. 

To learn more about this limited time offer, contact Kelly Gilboy at (608) 848-9589, send an e-mail inquiry to kgilboy@energysolutionsinc.com, or click here to view the most recent weekly edition of The Advisor, which contains additional insight on this offer.