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Natural Gas

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Stocks soaring

oil soaring

natural gas investors look on with dismay as week after week the price hits new lows. If the economy was truly on the mend surely nat gas should be increasing in price.

My conclusion is that everything that has risen recently is due to speculation. Dunno why natural gas has been left behind but it is a reminder of the deflation we are likely to face.

I am in cash but am thinking about going short stocks and oil and long natural gas

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Natural gas will make you a heap of money on a spike. This is a once in a decade low.

However, there is the price of contango whilst waiting which will cost you at least 5% each month.

WAIT for a Russian black card trigger to turn up, perhaps.

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Stocks soaring

oil soaring

natural gas investors look on with dismay as week after week the price hits new lows. If the economy was truly on the mend surely nat gas should be increasing in price.

My conclusion is that everything that has risen recently is due to speculation. Dunno why natural gas has been left behind but it is a reminder of the deflation we are likely to face.

I am in cash but am thinking about going short stocks and oil and long natural gas

linky?

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I believe Centrica are planning some gas storage in old fields - now is the perfect time to buy 'cheaper' gas and refill old fields for later use. There are a lot of countries around the world that don't have a gas market - look at West Africa and the Middle East and the super LNG tankers being built and I can see gas storage projects breathing a bit more life into our North Sea drilling. Netherlands and Germany are going that way as well.

Maybe an interesting long term punt:

http://www.google.co.uk/finance?q=LON:CNA

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I believe Centrica are planning some gas storage in old fields - now is the perfect time to buy 'cheaper' gas and refill old fields for later use. There are a lot of countries around the world that don't have a gas market - look at West Africa and the Middle East and the super LNG tankers being built and I can see gas storage projects breathing a bit more life into our North Sea drilling. Netherlands and Germany are going that way as well.

Maybe an interesting long term punt:

http://www.google.co.uk/finance?q=LON:CNA

Thanks - may look into that. Got a lump of cash in my SIPP waiting to go into something being eaten away by real inflation and earning bugger all interest...

Regards,

crude.

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Since the energy providers harped on no end about how our utility bills weren't decreasing as they had hedged the price at the top, I look forward to the large drop in my bill as they should surely have done the same near the bottom? :blink:

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Stocks soaring

oil soaring

natural gas investors look on with dismay as week after week the price hits new lows. If the economy was truly on the mend surely nat gas should be increasing in price.

My conclusion is that everything that has risen recently is due to speculation. Dunno why natural gas has been left behind but it is a reminder of the deflation we are likely to face.

I am in cash but am thinking about going short stocks and oil and long natural gas

I'm reading a lot about US inventories being at historical highs, production exceeding consumption. I've read a few suggestions that prices would go up a lot in 2010 or 2011, but they come from gas producers and aren't backed up by any data or analysis. The problem seems to be that coal rather than gas is used for power generation over there and reserves are huge. Risky but as someone said a play on a certain Russian strangulation of Europe could be interesting. As someone else said the contango in gas makes buying the product expensive, but a look at gas producers could be worthwile.

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Guest sillybear2
not sure, try Centrica

You mean 'BG Group', they do the exploration and drilling, and are now seperate from Centrica who use the "British Gas" brand on the retail side only.

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You mean 'BG Group', they do the exploration and drilling, and are now seperate from Centrica who use the "British Gas" brand on the retail side only.

No I didn't, and as I linked above Centrica have both upstream and downstream parts to the business.

BG used to be a gas company but now are both gas with oil - that is why I didn't suggest them.

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course, gas always is cheap in the summer....little demand??

Its all priced in.

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Guest sillybear2
No I didn't, and as I linked above Centrica have both upstream and downstream parts to the business.

BG used to be a gas company but now are both gas with oil - that is why I didn't suggest them.

Ok fair enough, but if you want a pure exploration play then Centrica includes a whole load of 'baggage' ;)

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