EIA Summer Outlook - Good for Natural Gas Stocks?
The amazement Northeaster blowing across the eastern United States may have definite the ending underside for hibernating natural gas and coalbed methane (CBM) crowd segments. The frost storm hunted this previous Tuesday’s Energy Information Administration (EIA) sharp-duration Energy & Summer Fuels Outlook.
The EIA forecast superior natural gas costs, this summer, while site WTI crude oil costs are estimated to decline. “On an yearly origin, the Henry Hub site cost is estimated to typical about $7.83 per mcf in 2007, an 89-cent amplify from the 2006 typical, and $8.11 per mcf in 2008.” The EIA expects summer 2007 natural gas costs to elevation by 17.7 percent over the previous summer. For this year, natural gas costs would amplify by 12.8 percent over 2006.
The statistical arm of the U.S. Department of Energy cited, “Concerns about extremist harden conditions and rising costs in the oil sell will keep upward energy on the Henry Hub site cost during greatly of the forecast phase.” The testify cutting out that “thrilling latent ultimatum for natural gas amplifys during the summer cooling spice.”
By the third lodge the EIA expects, “The trend will acceleprice during the height of the cooling spice.” The relax of 2007 bodes well for CBM and natural gas investors because site costs are again forecast to instigate a “climb about a frost pike.”
The subject marine and Atmospheric Administration prediction for heating and cooling quantity existence indicates an amplify of 8.4 percent more residential consumption of natural gas during summer 2007. According to the EIA, there will be 11 percent more ‘gas
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Posted on May 19th, 2008 by admin
Filed under: Hedge Fund
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