Friday, March 19, 2010

Gas Prices Continue Slide

After an encouraging start to the year, natural gas spot prices have been slowly tanking.  Prices have dropped steadily since hovering in the upper $5 range a month ago.  Today's close at $4.02/MMBtu makes me wonder if $3's should be expected next week.  The trajectory of this year's prices (red line) is ominously similar to last year's (dark blue) on the chart below. 

It could be a long, hot summer of low prices and falling rig counts. 

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