There's more at work here than just the fundamentals of supply and demand. The fallout from the current financial crisis is also impacting natural gas prices
Verona, WI (PRWEB) September 22, 2008
A weaker economy typically leads to lower natural gas prices as supplies outpace demand, but in today's world that's just one side of the equation. "There's more at work here than just the fundamentals of supply and demand. The fallout from the current financial crisis is also impacting natural gas prices," says Valerie Wood, President of Energy Solutions, Inc.
In its most recent analysis, The Link Between Natural Gas Prices and the Financial Crisis, Energy Solutions, Inc. explores how the fate of Bear Stearns, Lehman Brothers, Merrill Lynch, and AIG has impacted natural gas prices. It also looks at the remaining financial players and identifies how they too could impact the direction of natural gas prices.
Supplies are up, storage is refilling, demand is down, and the peak of hurricane season is behind us. These fundamental factors point to lower prices, but fundamentals aren't the only factors moving the price of natural gas today. "While some big players have fallen by the wayside, there are still a large number of speculators involved in commodities trading," says Wood. "In addition to the speculative influence, seasonality and historical price patterns need to be evaluated in conjunction with the fundamental factors of supply and demand."
What does this mean? "In a nutshell, fundamentals point to lower natural gas prices, but there are some overriding factors right now, independent of supply and demand, that warn of a significant rally at some point in the fourth quarter of 2008. Businesses need to prepare for that possibility," says Wood.
The Link Between Natural Gas Prices and the Financial Crisis is an easy-to-read analysis that draws comparisons between the timing of recent natural gas price moves and the timing of recent financial collapses. This is just one of the tools that Energy Solutions, Inc. offers to businesses. To keep pace with the ongoing changes in the natural gas industry, through The Advisor, a monthly and weekly natural gas publication, and tailored consulting, Energy Solutions, Inc. provides timely information on market conditions, as well as recommendations on when and how much natural gas a business should consider purchasing for their heating and manufacturing needs. "We help businesses better manage their natural gas needs by helping them implement a proactive approach to natural gas buying. When individuals understand the upside risk versus the downside potential, they 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 Link Between Natural Gas Prices and the Financial Crisis or to learn more about how to receive a free trial to The Advisor, call (608) 848-6255 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.