Chris McGill Natural gas market indicators

NGMI 108 May 29 2009

The fundamental strong supply/weak demand natural gas market environment has not changed, despite prices that have fallen, first precipitously then steadily, since last July.  Understanding the current market environment is relatively simple and needs to be viewed in that context.

The plain vanilla forces of supply and demand have led to interesting questions such as “why hasn’t domestic production fallen off more” and “when, if ever, will prices rebound?”   Most analysts see a push from demand, as the likeliest driver for fundamental price increases in the future.

Visit this link to download the full Natural Gas Market Indicator. Topics covered include: Reported Prices, Weather, Working Gas in Underground Storage, Natural Gas Production, Rig Counts, Pipeline Imports and Exports, and LNG Markets.

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