Natural Gas Prices Hit Contract Lows

05 Mar in Blog, natural gas

Natural gas prices today plummeted to a new contract low down over 13 points to close around 2.35 which is also an 8 year low in a complex which continues to head south with surging inventories as well as very little demand compared to other energy sources. The mid-west region of the country had an incredibly warm winter: thus lower demand and higher inventories. Natural gas for the April delivery is going to settle around 2.35 per cubic feet and just a couple years back was trading around $14 per cubic feet which is how far this commodity has fallen in the last several years while crude oil prices are still above $100 and gasoline prices are at $4 dollars a gallon however natural gas has never rebounded and even come close to the 2008 highs. I believe natural gas eventually could be a terrific opportunity because of the fact that at these prices is very cheap compared to using crude oil or the energy products, however picking a time when that happens is very difficult if an investor has a long-term horizon buying natural gas down at these levels might be a wise investment over the long term, however in the short term it looks like prices could even break two dollars.

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