Gas prices inch down

12 July 2006

Gas is still cagey but the long term suggests that come Winter 07 there will be alot of gas in the system and the prices, should fall as a result.

Gas prices have been rising as a result of demand and the situation in Rough, but the overriding feeling in the market is that the back end of the curve is overpriced. Significant supply will enter into the market for 2007 and 2008 and this should force gas to fall, interestingly to a point where the switch away from coal may happen this in turn should see a fall in emissions prices, and a further fall. Many people seeing that next year is lower than this year and are looking to secure better prices than last year are trying to lock volume in now, but in reality this is probably premature, in that the full effects of a potentially mild winter and more supply have not taken effect yet.


Gas  Bear Market 

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