Balanced Natural Gas Market on Way to a More Sustainable Price

摘要

Last week's 94 billion cubic foot storage pull, which shattered the previous all-time high delivery for the week of 58 Bcf from 2001, will not only firm the floor under natural gas prices, it opens the path to a $4 gas market going forward. The reasons are both physical and psychological. The market — which was plumbing under $2/MMBtu a year ago — has had a hard time since shaking off the aura of "historically low prices," even though it's becoming more obvious that we have exited the cellar. Wellhead prices are more than $2 per thousand cubic feet higher than this time last year, as are spot prices for delivered gas.