The market is adjusting to key price factors, including:
- Continued expansion and increased utilization of natural gas fired power plants creating high demand;
- Natural gas fracking requires higher natural gas pricing to support capital investments based on expected returns. Capital formation for fracking has gone flat due to low natural gas prices;
- Plans to export natural gas (LNG) to higher cost European markets creates support for a higher price floor.
For more on the natural gas market, please see the following:
- Market Realist article: Rise in Natural Gas Prices on the Week is Short Term Positive for Nat Gas Names
- Bloomberg Video: Jeffries' Eads Sees Natural Gas Rising to $5
1 comment:
WOW that surely gives a headache for many of us. Better now I joined Syntek Global. I am solved with my gas.
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