Natural gas was doing such a great job at staging a recovery. The trend was recently looking more and more like natural gas was going to get a good heel in the door of a U.S. energy policy if such a policy ever arises. That was then… Natural gas prices hit a low not seen in about a month on Friday.
Cooler weather forecasts in the Midwest is letting up on perceived demand, and even the high number of cloud formations out in the Atlantic are still many days out before they could turn into anything that might upset the oil and gas infrastructure along the Gulf of Mexico.
We saw gas down almost 6% at $2.77/MMBtu and that appears to be the lowest reading in one month. It was hard to remain too excited after nat-gas executives said in their earnings conference calls during the last few weeks that even the rise to above $3.00 was not exactly a big help for them.
The United States Natural Gas (NYSEMKT: UNG) is down almost 5% at $18.94 so far today against a 52-week range of $14.25 to $41.64. Chesapeake Energy Corporation (NYSE: CHK) was down 3.3% at $19.62 on last look.
So far, natural gas hasn’t been able to hold on to the comeback that many were hoping for.
JON C. OGG