U.S. Natural Gas Weekly – 8 April 2010

Working gas in storage rose 31 Bcf from previous week. Price rebounded on oversold conditions/short squeeze and again returned to downward path. Marginal costs of natural gas production is approximately 4 USD/MMBtu on average, so I would look this price as an equilibrium price and trade accordingly.

Chart 1. Natural Gas Futures

Source: StockCharts.com

Chart 2. Working Gas in Underground Storage Compared with 5 Year Average

Source: EIA

Chart 3. Natural Gas Futures Curve

Source: Bloomberg

This entry was posted on Friday, April 9th, 2010 at 2:56 am and is filed under Commodities, Markets, U.S. Natural Gas Weekly. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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