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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