Natural Gas Price Report - November 30, 2010

According to Natural Gas Price Report, issued by Energy Solutions, Inc., the January 2011 natural gas contract futures price on the New York Mercantile Exchange (NYMEX) rallied to a high of $4.487 per MMBtu on November 29, 2010.  The price rally seems to have been prompted by a weather forecast predicting the onset of much below normal temperatures in the eastern part of the nation, with the most severe cold projected to hit the southeast.

The last time the front-month natural gas NYMEX contract traded this high was August 9, 2010.  However, the rally was short-lived.  By the end of the day, the January 2011 natural gas NYMEX contract price collapsed to finish the day at just over $4.20 per MMBtu.

According to Valerie Wood, president of Energy Solutions, Inc. and author of Natural Gas Price Report, the natural gas market isn't really concerned about the colder weather.   "Natural gas storage inventories are currently at 3,837 Bcf and three weeks of the typical withdrawal season are already over," says Wood.  "Supply levels have continued to outpace demand and that isn't a situation that is going to be reversed quickly."

In addition, Wood points out that an improved pipeline infrastructure will also help to minimize price rallies.  "In particular, the Fayetteville Express Pipeline and TIGER Pipeline, which will connect to Fayetteville and Haynesville shale regions, will help reach other markets, and this too reduces upward pressure on natural gas prices,” says Wood.

Stay current with day-to-day price moves by viewing Natural Gas Price Report.

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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.