Weekend Roundup: Go long on Natural Gas, says Goldman

That would not be for 2012, Goldman is recommending going long on natural gas in the summer of 2013. The bank sees natural gas prices averaging US$4.00/mmbtu in 2013. Here’s what the analyst said:

“A return to normal winter temperatures next year combined with slower production growth off the declining natural gas rig count will substantially reduce the amount of overall coal-to-gas substitution that will be needed next year, setting the stage for a return to higher prices in 2013,” analyst David Greely said in a research note dated April 11.

We all know natural gas prices won’t stay low forever, after all, the cure for low prices are lower prices. However, for 2012, I expect more pain to come for natural gas particularly in the months of September and October. A mild summer this year would be the perfect storm to follow a warm winter. I would not be surprised at witnessing bankruptcies and massive shut-ins of natural gas production simply because the infrastructure will be clogged with NG. Natural gas prices in both the US and Canada are currently at record 10 year lows, will US power generation save the day? It will depend on the sustainability of the extra 6 BCF/d in demand that appeared earlier this year.


News Roundup

Shell, Asian partners in final talks to build $12-billion LNG project on Canada’s west coast

Kinder plans $5-billion expansion of Trans Mountain oil pipeline

Natural Gas Signals a ‘Manufacturing Renaissance’

Out of Africa (and Elsewhere): More Fossil Fuels

Hybrid owners unlikely to buy another one, study shows

Blog Roundup

Wheat ETF: Harvesting Profits from the Staple Food of Mankind (Agriculture ETF)

What Do You Lose When You Decide to Stop Working for the Man. (Invest it Wisely)

Top-20 dividend stocks for April 2012. (Passive Income Earner)

Bulls vs. Bears: Does the Economy Matter? (Balance Junkie)

Bonuses and Incentives (101 Centavos)

March 2012 Dividend Income Update (My Own Advisor)

Carnival Roundup

The Carnival of Financial Camaraderie #28

Carnival of Wealth, Themeless Edition

Self Directed Investing For Retirement Carnival – Easter Edition

Financial Simplicity Carnival – The Greaster Edition

Yakezie Carnival – Severe Weather Edition

Have a Great Weekend!