![]() The evidence is clearly pointing to the fact that natural gas prices can hardly go any lower. How did we get to this point, and what does it mean for natural gas stocks in both the short- and long-term?įirst things first. Natural Gas Price Cycles: January, 2002 to January, 2012 Gas prices are so low that even investors don’t want to contemplate the short-term future of natural gas stocks. But it does underscore the gravity of the situation. Now, Wall Street is hardly anticipating that natural gas companies are going to give their product away gratis. The fear is that producers could be forced to actually give gas away. This could make an already bad glut of gas far worse. And next week heralds the start of "injection season," the time from April through October when warmer weather allows for rebuilding gas inventories. That marks an unprecedented discount to crude oil. natural-gas prices are at a decade low, at about $2.20 per million British thermal unit. But the thriller unfolding in natural-gas markets-call it "Frackopalypse Now"-has even the most jaded of them on the edge of their seats. Traders like to exude an "I've-seen-this-movie-before" air of nonchalance. homeowners have and go “underwater” on their natural gas holdings. In it, Jakab argues that natural gas prices are headed so low, that the unthinkable may actually occur - producers may mirror the situation so many U.S. Months from now, the trigger to buy may well be a March 28 column by Spencer Jakab in The Wall Street Journal entitled “Why Natural Gas Prices May Fade To Red”. ![]() In fact, some pretty smart people in the investment world see a market bottom for natural gas right now, and that leads to this week’s version of the “One Billion Dollar Question”: What does a natural gas market bottom mean to investors? No doubt about it, natural gas prices are at historic lows, but that likely won’t last. Meritorious Awards for Engineering Innovation (MEAs).Rextag database of energy infrastructure assets Prices for top E&P stocks and commodities. Information on assets, buyers and sellers, deal values, and more.Ī searchable database of oil and gas debt and equity offerings.
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