"NG prices are All time low" I guess you don't remember the 80's. Rumor has it before this last drop in NG, some fertilizer plants were making product for $250 a ton and selling it for $950. Some of these same plants about went BK about 8 years ago.
that's why we should just focus on price. btw the reserve est reduction initially came out last fall.
Hi all, have been following NG for a little while, and hound some useful information on this thread as to what is going on, does anyone know of any sites with good commentary regarding the NG market? I have also been watching a couple of spreads the past couple of weeks, April/MAy , MAy/ June and they have made a decent leg down compared to their longer term range. Is there any specific reason for this? Apart from the same fundamental reasons for the whole downtrend for NG in general?
for commentary try platts. they're specialists in the energy mkts although not cheap. not sure how much free resources are on their site but check them out anyways. http://www.platts.com/Commodity/NaturalGas re the spreads coming down, i have no idea why they're coming down and neither does anyone else - reasons are assigned after the fact. a great way to humble yourself is to try and call a bottom in NG!
Thanks guys, some very good info there. Wasn't anything specific on the spreads And like Frank said there's always a story for it after the fact. But I guess its fair to say that the break down in the spreads I saw, is just an extension of the overall downtrend based on the fundamentals of where we are at..... I guess the million dollar question is is How low can it go........