GREY:CEXJF - Post Discussion
Post by
oilandgas111 on Apr 22, 2012 4:25am
Sprott asset management on natural gast stocks
Natural gas is cheap, but it's going to get cheaper. With natural gas, however, the fundamentals are extraordinarily weak, and the outlook for the next several quarters looks bleak. I expect this summer to be extraordinarily volatile and weak for natural gas stocks. I don't think people appreciate just how terrible the current situation is and what's likely coming in the next couple of quarters. This summer, I expect the market to reach a point of maximum pessimism, with Canadian gas pricing below $1 per thousand cubic feet (/Mcf). In a scenario of maxed-out physical storage, natural gas could become a no-bid. I think storage levels both in the U.S. and Canada will fill, and that may lead to a massive selloff.
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