Natural gas price sinks to lowest in 7 years

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Published at: www.theglobeandmail.com

Himadri BanerjiChairman and Managing DirectorEcoUrja

Natural Gas Price To Cross 6$ Per MBTu in 2010.

August 31, 2009

Natural gas prices continued to decline after falling on Aug. 21 to the lowest closing on the New York market in 7 years. For the week, [gas] prices declined 13.4%, or 43¢, and the price ratio between crude oil and natural gas now stands at 26.4:1, with predictions of even lower prices to come in the coming weeks.

Natural Gas Prices to remain low in the near-term

August 27, 2009

Analysis by: GLG Expert Contributor

Natural gas spot prices declined again this week with the largest decreases occurring in the western half of the US. The Henry Hub spot price decreased by $0.34 to $3.02 per MMBtu. At the NYMEX, futures prices decreased as supplies continued to be viewed as more than adequate to address near-term demand, including heating-related demand. Working gas in underground storage is estimated to have been 3,204 billion cubic feet (Bcf), which is 19.1 percent above the 5-year (2004-2008) average.

Michael LynchConsultantMichael E. Lynch

Natural gas prices to remain low. Flood of LNG coming to market

August 24, 2009

Natural gas prices are the lowest in seven years. Current price is below $3/million btu. Decline resulted from latest inventory report. Rigs drilling for natural gas are down by one half in the U.S. and by two-thirds in Canada. Companies that are still drilling, connect wells to pipelines but leave the valve closed. Others, like leader EnCana, are shutting in wells until prices improve. Analysts say more supply must be removed from the market. If not prices could plunge to $1/million btu.