be_ixf;ym_202105 d_12; ct_50

Select Page

Natural Gas Prices Locked in a Down-Trend

Natural Gas Prices Locked in a Down-Trend

Back on April 21, I told readers of Winning Investor Daily that rising natural gas prices couldn’t last. Too much gas in storage, too much production and not enough demand for the stuff would make the price fall. Here’s a quick excerpt:

The natural gas rally saw the price rise over 80% to where it is today … but I believe that rally is over.

You see, the oil industry is back to work. Oil production bottomed back in September 2016. As it picks up, so will natural gas production. The higher price will encourage new production too.

I was a little early, but the trend finally turned:

Back on April 21, I told readers of Winning Investor Daily that rising natural gas prices couldn’t last. I was a little early, but the trend finally turned.

As you can see, natural gas prices peaked at $3.27 per million British thermal units (BTU) in May 2017. It’s down 11% in 22 days. That trend looks locked in place … here’s why.

According to the Energy Information Administration, the first-quarter consumption of natural gas was 7.7 trillion cubic feet (TCF). That’s a fall of 0.5 TCF from last year, about 5%. It’s about 10% below the consumption in 2015 (8.6 TCF).

Production in the first quarter fell 3% from last year to 8.0 TCF. However, we only have data through March 2017. We know oil production ramped up since then. Oil wells produce a lot of natural gas … so gas production is rising too.

That’s why the natural gas price is falling and will continue to fall this summer.

Good investing,

Matt Badiali
Editor, Real Wealth Strategist

Newsletter Sign Up

Sponsored

MEET OUR EXPERTS

WHAT READERS ARE SAYING..

"You told me to ignore the noise on Wall Street. And thanks to you, I started towards the end of 2016 with $200,000 in my account and I recently put in an extra $100,000. [As of February 2019] My account is worth $500,788! I would’ve missed out if I followed conventional wisdom."

- Helen C.

"You have done once again!! You are reminding me of the GREAT Joe DiMaggio with your consistent hitting!! You knocked this one out of the park!"

- Keith S.

“I started with $215,000 in Nov. 2018, It is now over 800,000. So very happy with Banyan Hill Publishing.”

- Larry K.

Share This