Michael B. Krause

Natural Gas Report: Winds of Change

Yes, agreed. Against $95 crude, natural gas against the same 'inflation scale' of 6:1 ratio with more balanced (not bearish as the last 2 years) supply/demand outlook gives a price target of $15.83. Heating oil prices are even higher per energy unit.

There's a lot of room for upside, and even prices at $8.xx, while historically high, are just a reflection of dollar buying power in a *bear* market. This market has an aweful lot of price resistance, and will need the cool to stay as well as a continued hot summer for prices to recover, but I imagine by next winter $15 gas (not in the presence of a hurricane related spike) would not be unimaginable.