The US market is entering the Spring shoulder season with low gas consumption and large builds.
As all those neat nifty wells drilled in the share gas fields come online and with the US economy not up to speed the only way for gas prices to go is DOWN.
The USA lucked out again over the winter with more than ample supplies and weather that wasn't bad enough to reduce supplies more than expected.
All these dreamers waiting for a higher gas price to bail them out of 'bad wells' that had to be drilled to hold on to leases will be bleeding money.
NG wells without a substantial oil/condensate component are basically a one way trip to the poor house.
For NG to get above $5 per mcf is going to require 'something':
1. Huge expansion of the money supply to raise the price of everything
2. A large decreasse in NG production
3. The USA to boom
4. Really, really hot weather this summer.
Take your pick, but there is nothing in the near future to mor NG prices up.
Maybe in a couple of years or so.........
AZZ Price at posting:
38.5¢ Sentiment: LT Sell Disclosure: Not Held
