Search
Natural Gas Prices
0
0
The Impact of Speculative Greed
Fri, Jun 13 2008, 10:38 GMT
by Valerie Wood
What happens if buyers and sellers BOTH want higher prices? The inevitable — higher prices.
In its most recent analysis, Energy Solutions, Inc. identifies the how and why of today’s high energy prices, plus the shake-out that will happen when prices return to more reasonable price levels.
There is substantial talk about price manipulation in commodity markets but if each transaction involves one buyer and one seller, there should be an inherent protection against price manipulation — right? But what if the interests of certain buyers and sellers somehow align? While that seems like an absurd scenario, in its most recent analysis, Natural Gas Prices: The Impact of Speculative Greed, Energy Solutions, Inc. addresses how that has occurred and what it means to rising natural gas prices.
“Supply benefits of robust growth in natural gas production, strong hydro-power, and improving storage injections balanced against a potential for a decline in natural gas demand due to economic concerns are being overshadowed by greed,” said Valerie Wood, President of Energy Solutions, Inc. “Unfortunately, the uncertainties surrounding hurricane season, hotter weather, and record crude oil prices, create a favorable price environment for speculators to drive natural gas prices even higher. The bubble will inevitably burst, but it may take longer for that to happen than many anticipated. Businesses and consumers don’t like today’s prices, but with irrational markets, there’s no calling the top, so businesses need to have a plan on how to survive in the interim,” said Wood.
Natural Gas Prices: The Impact of Speculative Greed is an easy-to-read analysis designed to help commercial and industrial users of natural gas better understand why natural gas prices have reached 2-1/2 year highs and what market forces are necessary to return natural gas prices to more ‘reasonable’ price levels for natural gas buyers. “Of course, with natural gas prices holding easily in the double digits, the definition of ‘reasonable’ may still not be that attractive to buyers,” said Wood.
To keep pace with the ongoing changes in the natural gas industry, through The Advisor, a monthly and weekly publication, and tailored consulting, Energy Solutions, Inc. provides timely information on market conditions, as well as recommendations on when and how much natural gas a business should consider purchasing for their heating and manufacturing needs. "Natural gas price rallies are a very stressful time for individuals who are responsible for their company's natural gas needs. While we can’t change current price levels, we can make this difficult time more manageable and understandable by helping individuals gain the peace of mind that the right decisions are being made for their company. Remember, knowledge is power," said Wood.
Published on Fri, Jun 13 2008, 10:44 GMT
Energy Solutions, Inc.
| 2386 Dahlk Circle - Verona, WI 53593
http://www.energysolutionsinc.com/ | request@energysolutionsinc.com
Legal disclaimer and risk disclosure
The information contained herein ultimately relates to the cost and pricing of physical natural gas supplies. Past results are not necessarily indicative of future results. There is no guarantee that the information contained herein will result in profitable trades. No such guarantee can be given nor should be implied. The information provided herein should not be construed as an offer to buy or sell futures, options or commodities. While such information is taken from select sources which Energy Solutions, Inc. believes to be reliable, Energy Solutions, Inc. has not verified such information and makes no representation or warranty as to, and will not be responsible for, its accuracy or completeness. The information, views and opinions contained herein are presented for the convenience of the reader and are provided on the condition that errors or omissions therein, or reliance thereon, shall not be made the basis of a claim, demand or cause of action. The views and opinions expressed herein are for informational purposes only, are in no way guaranteed, are expressed as of a specific time and are subject to change at any time without notice.Interested in forex trading? forex brokerage firms!
FXstreet.com will give you a 3 months membership as soon as minimum rebates have been generated (€150 for private trader/ €300 for corporate trader)
[Read Premium full description]
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
©2008 "FXstreet.com. The Forex Market" All Rights Reserved.