Peter Tertzakian, chief energy economist at Calgary’s ARC Financial Corp., reported that coinciding with the collapse of natural gas prices, power generators have been using an average of 6.0 bcf/d more than normal over the past 6 weeks. The mild winter which resulted in bloated level of inventories masked increased consumption by power generators.
While natural gas storage levels are 900 bcf more than the 5 year average for this time of year, Peter believes that with gas production unlikely to grow this year, the extra 6 bcf/d of power demand COULD, if sustained, wipe out excess stores in less than 5 months.
Is the time to be a contrarian investor getting close? What do you think?
U.S. natural gas plumbs 10-year low on glut, mild weather
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