What is going on with natural gas?

March 17, 2010

Natural gas has been dropping for the past 1.75 years. In the past month, it has been dipping almost every day. It seems it is in total control of the gravity. The question is What is going on with natural gas? When will it hit bottom?

According to www.bloomberg.com, today's future natrual gas price is:
NATURAL GAS FUTR (USD/MMBtu) 4.301.

While crude oil is rising, natural gas is dropping. Most of the headlines about natural gas are supply are increasing and demand for it is dropping because of global warming.

However, for long term investment, I think it is a good time to buy. Demand will definitely increase when production increases. Demand for natural gas is going to recover sooner or later. It is a little slower than crude oil.

Also, I have been reading some scientific magazine saying that in the year 2012, temperature will drop dramatically. It is just part of the nature cycle. I personally don't believe in global warming. As a result, I will use some of my liquidity to purchase some natural gas.

Thanks

MC