same old short term drivel from people that are short nat gas
the year over year surplus continues to decline and with the colder weather it should decline more rapidly. You can guess how that is happening and spin it any way you like - it started last summer and has continued throughout the winter. The easiest explanation is that production growth has slowed or stopped while use has continued to increase.
It will be interesting to see just how big the decline was for this week. Will be released next thursday and it should be a shocker. After a brief warm-up it looks like there is going to be a another very cold snap that could lead to another huge decline in storage in the first two weeks of february because the cold snap will be spread across two reporting periods. Once the surplus versus the five year average is gone there will not be any reason for nat gas to be above $4 and headed towards $5 later this year.
For longer term nat gas appreciation it would be better if nat gas stays in the 3's for several more months because the longer there is a dramatically reduced drilling the longer and higher the next peak in nat gas pricing is.
Last year was the year to be short nat gas and nat gas stocks. This is the year to be collecting some high quality nat gas stocks at good prices.
I could'nt agree with you more, But I believe it will be sooner than later for the
$4.00 range. Producers Rule! They are trying to push up the price in order for
an appealing bottom line. As Grecco said " greed is good"!