News / Finance
Natural Gas Prices Likely to Decline into July 4th Holiday
History indicates that natural gas prices typically decline during the second half of June and into July 4th and this year is not expected to be an exception as more industrial businesses plan extended downtime during the holiday week.
The 4th of July holiday is typically the lowest demand day of the year for natural gas. That is even more likely to be the case this year because of the weaker economy as more industrial businesses take extended downtime during the 4th of July holiday.
“The 4th of July holiday is coming at a time when doubts are surfacing about an economic recovery. There has been a dramatic shift in sentiment over this past week that seems to be the result of the World Bank announcing that the global economy will contract by 2.9%. This is up from its March forecast of a 1.7% contraction,” says Valerie Wood, President of Energy Solutions, Inc. “Just a few weeks ago, there was euphoria surrounding an economic recovery and with that came rallying commodity prices. Today, the so-called green shoots of an economic recovery seem to be wilting, and that has helped to pull crude oil and natural gas prices lower.”
“Fundamentals are bearish and technicals are mixed so it is challenging for a business to try and figure out where to make prudent natural gas purchases, but the 4th of July holiday tends to present a buying opportunity that shouldn’t be overlooked,” says Wood.
In its most recent Weekly Edition, The Advisor provides natural gas buyers with the foundation for a natural gas buying strategy that not only addresses the potential 4th of July holiday buying opportunity but also extends beyond 2009. “The best time to implement a natural gas buying strategy is when the pricing rollercoaster is at the bottom of the hill – not the top – and that is exactly the situation today. Remember, knowledge is power,” says Wood.
Request your copy of the June 24, 2009 Weekly Edition of The Advisor by sending your request to june24-request@energysolutionsinc.com or call (608) 848-9589.
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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.
