Market Update

A chart showing natural gas 6 0-month futures curve, h 2

Market Update We looked at natural gas prices during mid-March compared to prices during the pandemic.  The graph below plots forward natural gas prices at two points in time.  The grey line represents the forward curve as of January 29, 2021 and the blue line as of March 18, 2022.  It is important to note…

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10,000 Maniacs Were Right

The dramatic decline of natural gas prices was the focus of our last article (These Are Days to Remember).  As we noted then, in real dollars, natural gas prices were near all-time lows.  Since then, natural gas prices have continued to fall. Yesterday the November futures contract settled at $2.033 per mmBtu.  The last time…

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Are Crude Oil and Natural Gas Reconciling?

Crude oil prices have dropped 38% since June for two reasons.  Shale oil production in the US Bakken, Eagle Ford, and Permian basins has increased dramatically – by more than 4 million barrels per day since 2008.  At the same time, worldwide demand for crude oil has declined as a result of slowing economies in…

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