Thread: Natural Gas

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  1. #1
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    Natural Gas

    Natural Gas prices falling like a rock, down 10% today over 63% from its peak just five months ago! Watching the price action of it the past year has been mind boggling. Swings up and down like I’ve never seen before. I heard price targets last year of $20-30 and I was thinking they were crazy then. I hope people weren’t fooled by that.

  2. Stocks/Investments Moderator boneil's Avatar
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    #2
    Lower energy prices are deflationary.

    But these wild energy price swings makes it difficult to the see the future earnings power of energy companies. Why invest in nat gas infrastructure, by the time the project is complete, demand for the gas might not be there like it was.
    Thanos was the hero

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    #3
    I used to own % in 2 natural gas wells in East Texas for about 8 years and when the prices per MCF cratered back in like 2008 or so, I paid to rework one well and then sold, then sold the other instead of capping it for future use. It was a great investment, but once the wells started to tail off, combined with the price drops, it was time to just get out...
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  4. Member
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    #4
    China shutting down had a big impact on most commodities. If they re-open and stay open I would expect commodity prices to rise again. It is good that prices are low though since Europe will need to make it through winter. Everyone expected a huge surge in natural gas prices due to the events in Ukraine but at this point it didn't turn out that way.

  5. Member
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    #5
    This is an example of why oil and gas companies are not significantly ramping up right now. By the time new wells come online, oil price could drop.

    Nat Gas storage draws have been less than expected given the cold weather. Europe seems to be doing ok on their storage.

  6. Member
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    #6
    Nat gas getting destroyed all month! How much lower will it go? $2.50 has been a good support level over the years. Will it hold there is the question.

  7. Member
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    #7
    Now hovering around support, but doesn’t look like it will hold. How low will it go?