Energy Solutions, Inc. Expects Natural Gas Prices to Rally Above $5 per MMBtu

For the past two months, Energy Solutions, Inc. has been warning of a second quarter rally in natural gas prices.  “The first quarter low of $3.81 per MMBtu was hit at the end of March, and given that low, natural gas prices could easily rise to $5.30 per MMBtu before meeting any sort of significant price resistance,” says Valerie Wood, President of Energy Solutions, Inc. 

The July 2010 natural gas NYMEX contract price has rallied by almost $1 per MMBtu in its last nine days of trading.  The price rally has been accelerated by revised hurricane forecasts from Colorado State University, a lower than anticipated storage injection for the week ending May 28, 2010, and the institution of a drilling moratorium in the Gulf of Mexico by the Obama Administration.   

“Recent market data has interjected uncertainty into the natural gas market, and uncertainty leads to higher prices,” says Wood.  “However, recent developments are occurring at a time when seasonally, natural gas prices are expected to rally, and this means there is now more strength behind the seasonal second quarter rally than there was one week ago.”

Additional information on this second quarter rally is discussed in the June 4, 2010, Weekly Edition of The Advisor.  Take a FREE 30-day trial to The Advisor and receive this most recent Weekly Edition, as well as the upcoming Monthly Edition for June, which contains additional insight into the potential price impacts of a drilling moratorium.  Learn more by visiting www.energysolutionsinc.com. 

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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.