Natural Gas Storage Report Fails to Rally Prices

Today, the Energy Information Administration (EIA) reported a storage withdrawal of 209 Bcf for the week ending February 4, 2011.  The March 2011 natural gas NYMEX contract initially rallied to $4.14 per MMBtu on the release of the storage inventory report, but quickly retreated to $4.02 per MMBtu.

"The outlook for natural gas prices is bearish right now," says Valerie Wood, President of Energy Solutions, Inc.  "There are only 1-1/2 months of winter remaining and production levels are still more than sufficient to meet heating demand needs as winter winds down."

In its latest weekly natural gas price outlook, Wood advises buyers to start preparing for a natural gas buying opportunity.  "Historically, natural gas prices stage a pre-summer rally, and that means buyers should be considering some natural gas purchases at a minimum into June, and perhaps into August 2011 depending on budgetary requirements."

Click here to view Energy Solutions, Inc. most recent natural gas pricing outlook.

# # #

About Energy Solutions, Inc.

Formed in 1996, Energy Solutions, Inc. is independently owned. With more than 25 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.