Natural Gas Prices - A Perception Market

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Perceptions can drive natural gas prices up and down, but facts ultimately prevail. In its November edition of The Advisor, Energy Solutions, Inc. will take an in-depth look at how the facts of supply and demand will influence natural gas prices in 2009 and beyond.

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By comparing the downside potential to the upside risk, businesses gain the peace of mind that the right decisions are being made for their company. Remember, knowledge is power

Perception is a powerful thing. Earlier this year, mass perception of supply shortages was one driving factor behind soaring natural gas prices. At that time, there was a fear in just how high prices would go. Today, the outlook is dramatically different as natural gas prices are at the lowest level in over a year. Now, the question seems to be how low will they go?

In a recent edition of The Advisor, Energy Solutions looked at how past and current perceptions have impacted natural gas prices. In its next monthly edition, it takes an in-depth look at natural gas production levels, liquefied natural gas (LNG) and Canadian imports, natural gas storage and the economy and discusses how the perceptions of these fundamental factors will influence natural gas prices in the upcoming year and beyond.

"Of course, it's more than just fundamentals," says Wood. Past analyses of Energy Solutions, Inc. identified speculators as a primary factor in pushing the price of natural gas to over $13 per MMBtu in early July. In 2005 following a catastrophic hurricane season, legitimate fears arose of supply shortfalls. This pushed natural gas prices to record high levels. However, in 2008 there weren't similar events behind the price rally. "We continue to believe that 2008 natural gas price moves both up and down have had a lot more to do with speculative trading or exiting of those trades than with the true fundamentals of supply and demand. However, the fallout from 2008 could change that, and fundamentals may ultimately prevail in 2009."

"Educate yourself," says Wood. "By keeping pace with the ongoing changes in the natural gas industry, a buyer is able to make decisions based on sound data, not fear." The Advisor, a weekly and monthly publication of Energy Solutions, Inc., is a valuable resource for businesses. "We do the research and analysis for you and then put it into a time-saving, easy-to-read format, that even includes strategies and recommendations," says Wood.

Through The Advisor, businesses will better understand their options and risks. "By comparing the downside potential to the upside risk, businesses gain the peace of mind that the right decisions are being made for their company. Remember, knowledge is power," said Wood.

For a complimentary copy of the November edition of The Advisor or to sign up for a one-month free trial to The Advisor with additional access to past editions, call 608-848-9589 or visit http://www.energysolutionsinc.com.

About Energy Solutions, Inc.
Formed in 1996, Energy Solutions, Inc. is independently owned. With more than 50 years of experience in the natural gas industry, our team focuses on natural gas prices and in helping businesses improve their internal processes for the purchase of natural gas.

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Valerie Wood
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