News / Business
Natural Gas Fast Facts Released
Next week's natural gas price action will provide insight for the second half of winter.
The winter of 2010-2011 has arrived and the eastern half of the nation is experiencing below-normal temperatures. According to the 6-10 day outlook from the National Oceanic and Atmospheric Administration, the eastern one-fourth of the nation, particularly the Mid-Atlantic States, should brace for brutal cold temperatures starting December 12, 2010. "Physical natural gas prices are expected to rise in conjunction with the colder weather," says Valerie Wood, President of Energy Solutions, Inc. The big question is whether the bitter cold can initiate a rally for natural gas futures prices on the New York Mercantile Exchange (NYMEX).
Ultimately, Wood expects next week’s natural gas price action to provide some valuable insight into what the rest of winter will hold. "If natural gas NYMEX prices are unable to rally in the face of brutally cold weather in the first half of winter, the outlook for natural gas prices in the second half of winter given the current weather forecasts is increasingly bearish," says Wood. "Conversely, speculators have before them for the first time in six months a major event that supports higher natural gas prices, and they may exploit this opportunity, driving the January 2011 natural gas NYMEX futures contact toward or even over $5 per MMBtu." The December edition of Fast Facts points out that available natural gas supplies are more than ample to meet winter heating demand needs. Nevertheless, the year-on-year storage deficit is expected to expand, and that fact combined with potential speculative short-covering, the seasonality of a fourth quarter rally, and colder weather could result in a sizable jump for natural gas prices.
View Fast Facts or call (608) 848-9589 to request a complimentary copy of the December edition. Fast Facts is a valuable component of a monthly and weekly natural gas publication, The Advisor, which is written by Valerie Wood, President of Energy Solutions, Inc., an industry veteran with more than 26 years of natural gas expertise.
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About Energy Solutions, Inc.
Formed in 1996, Energy Solutions, Inc. is independently owned. With combined experience of more than 50 years in the natural gas industry, our team focuses on helping businesses better understand the natural gas industry in order to improve their competitive edge.
