Long Term Natural Gas Price in Uptrend

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Includes: COP, DVN, ECA
by: Kurt Wulff

Commodity markets signal a brighter future for buy recommendations Encana (NYSE:ECA), ConocoPhillips (NYSE:COP) and Devon Energy (NYSE:DVN), the first, second and third largest North American natural gas producers by volume. The latest weekly price in our tally of the average monthly futures price for natural gas for the next six years at $7.18 has edged above the latest 40-week average, thereby reversing a ten-month downtrend by that measure.

Ironically, the symbolic indicator of bullish future conditions arises as Encana told investors at the Canadian Association of Petroleum Producers conference in Calgary on June 15 that it may reduce natural gas production as a result of low price.

Originally published on June 16, 2009.