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Demand, not supply, about to take hold of natural gas prices

  • "[The] cycle has turned," says Deutsche's Stephen Richardson, opining that boosted demand, rather than the soaring supply of the past few years is about to take control on natural gas prices.
  • Low prices have encouraged switching and "a new baseload of natural gas demand on the industrial side is just emerging as a result of multi-year investments."
  • ETFs: UNG, DGAZ, UGAZ, BOIL, GAZ, KOLD, UNL, NAGS, DCNG
Comments (10)
  • mohamedthaver
    , contributor
    Comments (2) | Send Message
     
    everyday more supply is coming into the market while the economy slows down, that's a double negative, price will drop back to $2
    27 May, 05:23 PM Reply Like
  • tridacna
    , contributor
    Comments (91) | Send Message
     
    You're behind the curve...
    27 May, 06:34 PM Reply Like
  • geologist
    , contributor
    Comments (211) | Send Message
     
    Explain please how demand is increasing or decreasing relative to supply. Regards
    27 May, 07:26 PM Reply Like
  • roncompton
    , contributor
    Comments (2) | Send Message
     
    I would think this is a positive for dgaz. Do you agree?
    27 May, 08:51 PM Reply Like
  • kellytom
    , contributor
    Comments (2) | Send Message
     
    In addition, I just saw a sign posted at the WalMart Oil Change section about a new product by Penzoil that uses synthetic oil made from Natural Gas. I also saw a new brochure or booklet at the Pohanka Honda advertising the new Honda Civic 2014 running on Liquified Natural Gas. I am curious as to where will the fueling stations be and how many of them will be out there to supply LNG. But there are certainly new trends in natural gas demand.
    27 May, 08:53 PM Reply Like
  • kellytom
    , contributor
    Comments (2) | Send Message
     
    Due to the recent US Supreme Court decision that gives the EPA more power to regulate power plant emissions, in early June (next week?), it's expected that the EPA will make major announcements about power plants gradually moving from coal fire plant to Natural Gas Fire plant. This should generate more demand for using natural gas. It's not clear how fast the power plants are required to implement changes. I am curious as to how the market will react.

     

    http://usat.ly/1mnngkS
    27 May, 08:53 PM Reply Like
  • gespecht
    , contributor
    Comments (15) | Send Message
     
    We haven't heard much from Boone Pickens on this subject lately since the domestic oil picked up. Rumors like this story will certainly get the markets riled up whether we are ready to change or not. I can't give this story much credit without some statistics to prove what this man says. Otherwise it's just one man's opinion. Just like the one I have. The volatility of the natural gas market is high enough without any help from stories like this.
    27 May, 11:49 PM Reply Like
  • WZT
    , contributor
    Comments (28) | Send Message
     
    I believe there is a future with nat gas in America and demand will pick up but not that significantly. Perhaps over the next 2 years we should see the upward trend for many of the reasons cited in comment's posted. With that in mind shouldn't some consideration be given over the Russia/China deal tha was announced most recently? I understand that could dampen the prospects of LNG conversion plants and shipping of the product.
    28 May, 01:13 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (8135) | Send Message
     
    I can't see how NG rises to $6 (and maintains that level or above for a full quarter) before 2019.

     

    The supply of NG is enormous and getting larger while the global economy sputters along at a 1% to 2% growth rate.
    28 May, 09:02 AM Reply Like
  • loneranger4931
    , contributor
    Comment (1) | Send Message
     
    driver for trucking company.invest some here and there.
    18 Jun, 12:15 AM Reply Like
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