News / Business
Energy Solutions, Inc. Issues Natural Gas Price Alert
Natural gas prices have broken through some major price support and this could be the precursor to further price downside.
The August 2010 natural gas NYMEX contract on the New York Mercantile Exchange (NYMEX) fell precipitously following the announcement by the Energy Information Administration that 78 Bcf was injected into storage for the week ending July 2, 2010. “The quick move down in natural gas prices was a bit surprising because the storage report was in line with estimates and record heat in the Northeast is continuing,” says Valerie Wood, President of Energy Solutions, Inc. “However, there is a great deal of uncertainty over the pace of economic recovery, and there has been no slowdown in natural gas supply growth. Right now, there is just too much natural gas supply and not enough natural gas demand.”
In its most recent Pricing Alert, Wood discusses potential natural gas price targets for what it calls the seasonal third quarter low and also provides some guidance on potential actions that natural gas buyers should consider taking. “Third quarter lows typically occur in either July or September and very often provide multi-year buying opportunities” says Wood. “In layman terms, if you’re a company that needs to control your natural gas expenditures to protect your bottom line, this is a critical time to be reviewing and implementing your natural gas purchasing strategy.”
Subscribers of the Advisor, a multi-faceted publication of Energy Solutions, Inc., automatically receive Pricing Alerts immediately upon issuance. See what your colleagues are reading. Sign up for a FREE 30-day trial to the Advisor and for a limited time, this valuable Pricing Alert will be provided to you at no additional cost.
“Remember, knowledge is power,” says Wood. For additional information on The Advisor and/or this Pricing Alert, contact Kelly Gilboy at (608) 848-9589 or send an e-mail to kgilboy@energysolutionsinc.com.
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.
