Natural Gas Prices Are At A 10-Year Low And Could Stay There Through The Fall

oklahoma natural gas

Photo: Flickr Thomas and Diane Jones

Natural gas prices settled at a 10-year low of $2.15 per 1,000 cubic feet yesterday.  Futures contracts continue to trade at the level today.Increased drilling activity has led to a glut of supply.  According to reports, there’s enough gas in storage to meet the country’s demands for over a month.

Morgan Stanley’s analysts think inventories could remain at record levels through October.  But they think prices could turn up year-end as supplies start to tighten.

Citi reiterates that sentiment in a new research report to clients.  They write that pipeline restrictions for natural gas, which often come in autumn but have been accelerated due to the low prices and excess gas, were put in place “in part due to the fear that there might not be enough capacity to store gas for other customers, generally utilities, with firmly committed injection requirements.”  This could be bullish for prices.

SEE ALSO: MORGAN STANLEY: This Is What All The World’s Commodities Will Do This Year And Next Year >

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