Peyto Exploration & Development Corp T.PEY

Shenty is right

[ngtraderng]

But for the wrong reasons. I don't believe that interest rates will do much harm. Perhaps slow down the economy a bit and lower demand. The big issue is that NG production in North America is back to all time highs and growing. There is nothing to stop the overproduction in the short term except for lower prices.

Long term, once the grade A shale locations are exhuated, NG supply and demand will come back to balance but this could take a decade to play out.

[TerribleEng]

I agree. Producers need to drill, hedge out the front end of the curve to avoid over stimulating future production. This much backwardation in the term is not normal or healthy to the long term stability of the market.