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gdtrader
 

Registered: Dec 2002
Posts: 199

 

01-01-12 04:00 PM

Maybe I am crazy but think its looking really cheap true market is depressed now. Makes perfect time to start switching to alternative energy. Most homes in already get their heat this way why not power our homes and cars as well ?

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Maverick74
 

Registered: Mar 2002
Posts: 17365

 

01-01-12 05:52 PM


Quote from gdtrader:

Maybe I am crazy but think its looking really cheap true market is depressed now. Makes perfect time to start switching to alternative energy. Most homes in already get their heat this way why not power our homes and cars as well ?



It's in steep contango. Front month is going to continue to go down and the back months are higher. FWI, we have a greater supply of nat gas then any other resource in this country. Front month could go a lot lower.

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gdtrader
 

Registered: Dec 2002
Posts: 199

 

01-01-12 07:17 PM

It's already dirt cheap not sure how much lower it will go be before it pops.

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spd
 

Registered: Dec 2008
Posts: 1161

 

01-01-12 07:26 PM

Famous last words "cant go much lower"

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FreakofNature
 

Registered: Jun 2011
Posts: 1073

 

01-01-12 07:57 PM

I would love to buy NG long term at these prices but with the contango I just dont know how to do it in a clever way.

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Maverick74
 

Registered: Mar 2002
Posts: 17365

 

01-01-12 08:05 PM


Quote from gdtrader:

It's already dirt cheap not sure how much lower it will go be before it pops.



What's dirt cheap? What month? You have to be more specific. Natty gas trades out 10 years on the curve. Which contract month are you talking about? Any long term buyers are going to go out further on the curve. They are not buying the front month that you think is "so cheap".

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