GREY:ARKXF - Post Discussion
Post by
teevee on May 28, 2014 9:44am
higher nat gas prices coming according to Deutsche Bank
Published: May 23, 2014
Gas producers just pumped the year's largest surplus into storage -- and it's simply not enough, Deutsche Bank says. The firm cuts the amount of gas it expects to be stockpiled for peak winter demand by 100B cubic feet, down to 3.37T cubic feet, and advises traders to buy back into gas. A frigid winter drained stockpiles to 11-year lows, and gas producers have to hit an outsized target well beyond record surpluses in order to refill. They've done it only once this year, according to EIA. At this pace, prices will rise to $4.90/mmBtu this winter, compared to the $4.50/mmBtu mark where early 2015 futures now trade around, Deutsche says. (tim.puko@wsj.com)
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