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Natural Gas Prices: Who is in Control?
Thu, Mar 20 2008, 10:45 GMT
by Valerie Wood
- The potential for above-average natural gas storage injections in April and May is very strong.
- In its most recent analysis, Energy Solutions, Inc. identifies how this important factor could break the
- link to crude oil and ultimately be responsible for significantly reversing natural gas price direction.
Verona, WI — March 17, 2008 — Speculative investors are pushing commodity prices higher, and natural gas is just one of those commodities being impacted. With natural gas prices at levels not seen since the catastrophic hurricane season of 2005, many analysts are painting a very gloomy picture for natural gas buyers. However, Energy Solutions, Inc. believes the price outlook for natural gas buyers could improve considerably over the next 60-90 days.
“Natural gas is unique because foreign trade for the U.S. isn’t at the same level as it is for many other commodities that have recently acted like a magnet for new money seeking big returns. With moderating temperatures, lower demand due to a slowing economy, and record snowpack levels in the Northwest for hydropower, natural gas storage injections could easily exceed historical averages. In addition, because summer through fall futures prices are consistently higher than current prices, the economic incentive to inject early in the season is very strong,” said Valerie Wood, President of Energy Solutions, Inc. “Since natural gas is primarily produced and consumed within our own country, these factors represent potential price stability and that could make natural gas a less attractive commodity to investors seeking quick profits.”
These conclusions are detailed in the company’s most recent analysis, Natural Gas Prices: Who is in Control?, which takes an in-depth look at natural gas prices, supply and demand, storage inventories and LNG/Canadian imports. The analysis also explores how soaring crude oil prices, the value of the U.S. dollar, interest rate cuts, and a potential recession may impact natural gas prices. “This easy-to-read analysis is designed to help commercial and industrial users of natural gas increase their understanding of today’s complex and frustrating natural gas market. In short, the analysis covers a myriad of issues impacting natural gas prices today and then identifies the market forces needed to bring natural gas prices back to more reasonable price levels for natural gas buyers,” said Wood.
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 Thu, Mar 20 2008, 10:47 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!
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