If the EIA is correct in their assumption that demand will outstrip production in 2015 with the rig counts plummeting, we could be in a new bull market by year’s end.
Not bullish yet but the next few weeks could be a good buying opportunity.
DJ EIA: Natural Gas In, Coal Out -- Market Talk
15:47 EDT - The EIA keeps raising its expectations for natural-gas consumption, darkening an already-gloomy outlook
for coal. Gas prices have fallen so far this winter that power plants are gobbling up the fuel and shunning coal even
faster than expected. As such, the EIA now sees US natural gas consumption likely hitting 75.7B cubic feet/day in 2015,
outpacing new production by nearly 2B. Meanwhile, the agency cuts its 2015 coal-output view 2.4% from last month's view
to 942.9M short tons. It's the second month in a row the EIA has strongly raised expectations for gas and cut them for
coal. Nymex April natural gas gained 2% today to $2.732/MMBtu. (tim.puko@wsj.com)
(END) Dow Jones Newswires
March 10, 2015 15:47 ET (19:47 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
031015 19:47 -- GMT
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