One reason that natural gas prices are rising is that the storage has declined too rapidly when the weather this winter has not really been that cold. It appears that natural gas production could already by in decline even though the EIA natural gas forecasts are for a gradual increase in production for 2013.
The critics have pointed out that the dry gas rig count has collapsed in the last 12 months so how can production be increasing considering the high depletion rates of shale gas wells?
Keep in mind that if the EIA is off by 5% in their supply estimates, both coal and gas markets can have violent price swings in a hurry.
We are going to have an interesting summer as the weather heats up and will find out if there is really as much natural gas and coal as the EIA forecasts.