It appears the overall economic outlook for 2010 is going to be better than 2009, but what does that mean for natural gas prices? Here are some of the expert outlooks:
The Energy Information Administration's short term outlook for 2010 is for consumption to remain flat:
EIA expects the annual average natural gas Henry Hub spot price for 2010 to be $5.36 per thousand cubic feet (Mcf), a $1.30-per-Mcf increase over the 2009 average of $4.06 per Mcf. The price will continue to increase in 2011, averaging $6.12 per Mcf for the year.
Deutche Bank's outlook:
We are maintaining our 2010 calendar year forecast at USD6/mmBtu, which incorporates a USD5.50 entry price in the current quarter and a modest recovery throughout the year. For 2011 and 2012, we are forecasting USD6 and USD6.25/mmBtu. With ample supplies available from the shale plays and imported LNG, we are no longer expect a return to a long-term 8-10 to 1 oil/gas price ratio. We believe that USD6-7/mmBtu prices are sufficient to generate supply under normal market conditions over the next few years.....Read the entire article.
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