Mike Paulenoff, author of the MPTrader.com published a brief report on the natural gas market yesterday, with the conclusion that the worst of the natural gas bear market might be behind us. Here is an excerpt from the article with a link below for the full article. “The natural gas inventory figures came in more or less as expected, which in this market is a victory! Otherwise, the tame inventory data really should not be a surprise. If we are to believe what my near and intermediate work is telling us, the worst of the gas bear market is behind us, and now we are in the arduous “base-building” phase (measured in weeks) prior to a sustainable powerful upmove.”
If this prediction holds true, it would reinforce the current futures strip pricing on NYMEX, which shows $4 and $5 per mcf prices over the near to mid term contracts, and would be a great value driver for energy E & P groups that are developing North American based natural gas reserves.
