Weekly Natural gas update (updated every Thursday evening):
Weekly storage report (updated every Thursday morning):
EIA Short-term Energy Outlook (updated monthly):
Natural gas continued it's mini-rally today. Dec contract jumped about 35 cents to 4.95. I can't check the markets until the afternoon tomorrow, but I may enter a short position then unless the rally appears to still be just as strong.
Some choice quotes from the most recent articles above:
"EIA expects that the Henry Hub price of natural gas will average $2.25 per MMBtu in October 2009, which is the lowest monthly average spot price since September 2001. Prices are projected to bottom out in October, and then rise through February 2010, averaging $4.59 per MMBtu in February, and fall from March through August 2010."
"Despite a 20-percent drop in prices and a 45-percent drop in working natural gas drilling rigs since the start of the year, total natural gas production increased slightly from January to June 2009. This current production trend reflects significant improvements in horizontal drilling technology and robust productivity from shale gas discoveries in Louisiana, Oklahoma, Arkansas, and Pennsylvania."
"As electric power demand for air conditioning wanes, a continuation of recent natural gas supply trends could cause spot natural gas prices to fall below current projections before cooler temperatures induce higher demand for space heating. In the projections, prices rise modestly in 2010, reflecting increased economic activity and lower production levels as a result of the current drilling pullback. However, it will take some time to work off current inventory levels and enhanced production capabilities should limit significant increases in prices throughout the forecast period. On an annual basis, the projected Henry Hub spot price averages $3.65 Mcf in 2009 and $4.78 Mcf in 2010."
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