It seems to me that the Nat Gas demand is relatively static -- not as many people/industries shifting to it as the price seems to justify -- while the supply side keeps blowing out every day. They get better and better at fracking wells and they keep finding new domestic fields that are significant. If the price rises and the producers, even the smaller ones, think it can stay up it creates even more incentive to frack more aggressively effectively capping the market with more supply. If there was ever a market that stoped responding to economic reality this is it. The Picken's plan to convert trucks from diesel to Nat Gas makes all the sense in the world and even switching cars to it is becoming more economic. Certainly the utilities could use more of it. The supply is huge and expandable and the US is simply insane not to capitalize on it. People talk about an energy policy as if it is a complex subject. Between aggressive conservation -- turning out the lights, insulating buildings etc. and migrating what we can from oil to gas we can be half way home in three or four years with investments that are fairly modest. When they write the history of this era the failure of the US to use the resources that we have in abundance will require that they pick a name for the age. The Age of Energy Insanity seems to fit but maybe historians will find a better one.
I'm in too, though I don't plan to hold till $3.54. Once again I am using HNU.TO. Bought 5000 at 5.75 first thing this morning. I am hopeful that inventory withdrawal will surprise to the upside. And we finally get a little colder next week. "The strongly positive AO and NAO is finally showing signs of breaking down" Read more: http://www.foxnews.com/scitech/2012/01/11/this-winters-weirdly-warm-weather-explained/#ixzz1jG0vkHkK
Are you saying the demand for gas is not relatively static vs the blow out in supply? Relatively being the operative word. I'm not saying on an absolute basis it is static but I believe it is vs supply.
Phooey. Natural gas withdrawal (95bcf) WAS above consensus (86 to 90bcf), yet we spiked down, and built yet another bearish flag. I have my stop in just below lod.