warm weather to crash natural gas prices

AZZ is an excellent company and stands head and shoulders over all of the other U.S. natural gas explorers listed on the ASX. This comment applies to the group as a whole and it covers AZZ, BCC, ADI VIL, AUT and possibly some others. All of the technicals on these stocks have flattened out or fallen over the recent weeks.

Natural gas supplies in th U.S. are in over supply. N.Gas prices have fallen sharply to around US$4.50 per thousand cubic feet. This has happened in the face of a very extended cold winter which has not eaten into these supplies. This very dramatic cold spell has now come to an end with lows in the South reaching 15-30F now gone. Lows for next week are forecast to reach around 40F for Atlanta and highs in the mid 60's. This means that gas consumption for home heating will come to a very sharp stop from last weeks levels. This situation repeats across the whole South. This situation is very bearish for gas prices in the very short term (next two months) and possibly longer if we have a mild summer.