Natural Gas Stages Rally, Not Recovery

Energy , Natural Gas May 10, 2012 No Comments

Natural gasThe energy worlds most hopeless case just twitched an eyebrow. But natural gas isnt ready to leave intensive care just yet.
Having plunged below $2 per million British thermal units in April, front-month gas futures have since bounced 27%.

This reflects rekindled hopes that bloated gas inventories might moderate. These typically get run down during winter and rebuilt over summer, peaking in late fall.

This year, though, a mild winter kept more gas in storage, and the current inventory is 31% above the maximum level reached at this time of year between 2007 and 2011. Fears that U.S. storage capacity of about 4.2 trillion cubic feet might fill up entirely this year and force some dumping of gas into the market explains why prices fell so low.

via HEARD ON THE STREET: Natural Gas Stages Rally, Not Recovery – WSJ.com.

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Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.

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