The price of natural gas in various locations, including the NYMEX futures price, has been inching up over the past few days. Yesterday the NYMEX price closed down slightly, at $1.88/Mcf. But that’s better than the $1.60 territory where it’s been bumping around. The price is inching up because of the Saudi-Russian oil price war. Most traders figure there will be less shale oil drilling in the U.S., and because of it, less associated natural gas production from places like the Permian (and Bakken). Which in turn means less supply, driving up prices for natgas. How long will prices go up? And, how high will the price go? We spotted one trader’s take on where he believes prices are heading.
The price of natural gas in various locations, including the NYMEX futures price, has been inching up over the past few days. Yesterday the NYMEX price closed down slightly, at $1.88/Mcf. But that’s better than the $1.60 territory where it’s been bumping around. The price is inching up because of the Saudi-Russian oil price war. Most traders figure there will be less shale oil drilling in the U.S., and because of it, less associated natural gas production from places like the Permian (and Bakken). Which in turn means less supply, driving up prices for natgas. How long will prices go up? And, how high will the price go? We spotted one trader’s take on where he believes prices are heading.