Natural Gas Fundamental Analysis Jan.20, 2012, Forecast

Economic Events: (GMT)


Analysis and Recommendations:

Natural Gas continues to decline to its lowest price since 2002. Todays inventory data showed that stocks declined at a minimal rate, pushing gas down by 38% in early morning trades. The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended January 13 fell by 87 billion cubic feet, after declining by 95 billion cubic feet in the preceding week. As the weather remains warm and winter is ticking away the stock piles of gas are driving the prices down.

Total U.S. natural gas storage came in at 3.290 trillion cubic feet as of last week. Stockpiles  were 539 billion cubic feet higher than last year at this time. Natural Gas will continue to decline until it has hit a botton and will most likely sit there for a long time, unless a cold spell breaks.

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