RE: Strange action today....There is an analyst quoted in the Globe and Mail that says that LNG will drive down the price of natural gas big time. He says LNG will be delivered in North America at $4.50. His view is that is trouble for Encana. Encana officials respond that they are not at all worried about his prognostications. I read the piece this a.m. and I think the article also said that he is in the distinct minority of analysts, perhaps a distinct minority of one, in his views. It strikes me that even if this guy were right, we are still several years away from any meaningful quantity of LNG hitting North American shores.
The only other thing is that natural gas didn't go up much today but oil rocketed up close to $2. But that really doesn't explain the move down unless investors are cashing in and jumping to oil stocks.
The interesting thing about expensive oil is that it gives rise to more demand for cheap natural gas and there are major users out there than can fairly readily switch from one energy source to the other.
So, who knows and even if the above factors are at play, seems pretty complicated to me.