RE: Are you Bullish yet?"If customers in India, Japan or Korea are willing to pay US$12 to US$16 per mcf then North America will follow at least to $7"
Not really....the two are not connected....why would they have a connection? The markets are not related....now, if the prices were reversed, and NA gas was more expensive then overseas gas THEN they would be connected.....the reason being is that NA has no capacity to export LNG, but can import it in large numbers.....so ifgas was, say $12 in NA, and $7 in Europe, then most people in Europe would ship their gas to the US.....this would be done until the two prices reached equilibrium.......however, because there is no way to get American gas to Europe and elsewhere, the price could be $50, and it wouldn't matter becaue it doesn't matter how big a discrepancy, it's useless if you can't get your gas there.
In global trade, prices are not similar all over the world simply because it makes sense....they are similar because the markets are all connected now, and thus the prices find balance.....that is why there are global prices for oil and gold, because those two commodities can ge from anywhere, to anywhere, and if ther WAS a discrapancy in two different areas, that arb opp. would be quickly filled by some enterprising individual or company.
Because NG markets are NOT conneted, people aren't going to pay more here for gas because "in Europe they pay more"...it doesn't work like that.