In my last article, I discussed how ISIS’ actions in Iraq aren’t likely to send oil prices blasting higher in the short term.

Supplies are simply too plentiful for prices to experience a major spike.

For natural gas, however, a price explosion is imminent…

Indeed, even though natural gas is such an abundant resource, there are other factors in play right now that point to a significant increase in prices over the next six to eight months.



In fact, seeing natural gas reach the $6 level by December isn’t out of the question.

A Roadmap to $6 Natural Gas

Remember, the trajectory for natural gas prices is decided mainly by five factors: usage predictions, demand forecasts, current inventory levels, a healthy dose of speculation and – of course – the weather.

Let’s take a closer look at the first four…

Price Driver #1: Usage. We’re certainly going to see greater commercial usage of natural gas – both for transportation (the fastest-growing segment) and for electricity generation. Because of tougher carbon emission regulations, many power plants are transitioning out of coal and into natural gas.

Price Driver #2: Demand. With a booming new housing market and greater occupancy in existing homes (that were once under foreclosure), we’re going to see more demand from consumers who are looking at natural gas to heat their homes – and power all types of household appliances. READ MORE ->>> http://www.wallstreetdail...

REBEL!
Back To Top
TOP