Thursday
May072009
Gloomy Natural Gas Outlook
Thursday, May 7, 2009 at 05:26PM
Adam Young of The Barricade sent me an email a few days ago linking to one of his articles.
Now, Shale-gas companies may have been impaled on their own bayonets. Yet some would have us believe that natural gas prices are poised for a great comeback–that all the fret and worry is for nothing because prices are going to come right back up and justify the development of all the shale in the country, and then some. They are wrong: demand will continue to be weak and supply will not be nearly as sparse as the some of the gas-bulls would have us believe.
Click for more
I believe that there is always a bull market in something but it may not be in natural gas in the short term. On the other hand the United States Natural Gas fund (UNG) has made a nice move but more follow through would be required to get traders excited.
Before you get too excited, Adam recently linked to another gloomy gas article - Commodities Roundup: Natural Gas
Natural Gas Is Going to 1997 Levels and is Going to Stay There for A While
Now, Shale-gas companies may have been impaled on their own bayonets. Yet some would have us believe that natural gas prices are poised for a great comeback–that all the fret and worry is for nothing because prices are going to come right back up and justify the development of all the shale in the country, and then some. They are wrong: demand will continue to be weak and supply will not be nearly as sparse as the some of the gas-bulls would have us believe.
Click for more
I believe that there is always a bull market in something but it may not be in natural gas in the short term. On the other hand the United States Natural Gas fund (UNG) has made a nice move but more follow through would be required to get traders excited.
Before you get too excited, Adam recently linked to another gloomy gas article - Commodities Roundup: Natural Gas
Reader Comments (1)
I agree that the future looks bleak for UNG . We s till have a weak economy and more than adequate supplies. Not to mention a large part of the stimulus package is aimed at producing alternatives to fossil fuels. UNG depends on a strong economy that demands oil and natural gas. Something we do not have right now.