A contrarian makes another call – this time, natural gas
April 18, 2010
The Goble and Mail
…that gas inventories are about to get a lot tighter, that new supplies are overstated, and that prices are headed north of $8 by end of summer…”We would expect gas prices to get above $8 in the August-September range.”…a slow-but gradual decline in North American natural gas reserves – ragardless of shale – means an average price in the $8 range is inevitable to trigger the “demand destruction” necessary to keep the supply-demand picture in balance. Eventually…that price will creep up toward $10 by the end of the decade, as gas production slowly depletes.