By FX Empire.com
Natural Gas Fundamental Analysis Jan. 30, 2012, Forecast
Economic Events: (GMT)
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Analysis and Recommendations:
Natural Gas continues to amaze, trading at 2.723 +0.069 (+2.60%)
After reaching a bottom last week of 2.32, natural gas bleeped up, as buyers were jumping in figuring it had hit a bottom. The inflow of buyers pushed NG upwards and then profit taking started, but NG held its gains. Mid week, Chesapeake Energy announced it was cutting production until it was economically feasible to produce NG. The midweek energy report, showed ample inventory and the weather man said there would be no cold fronts moving in, but Natural Gas has continued to rise.
The U.S. Energy department cut its estimate for natural gas reserves in the Marcellus shale formation by 66%, citing improved information on supply. Elsewhere, Occidental Petroleum announced it will cut back on natural gas drilling due to the low prices and Conoco Phillips agreed by limiting North American natural gas production investments.
These events should not have had an immediate effect on the markets but none the less they did. NG is still trading very low, even the Energy Admin had estimated the cost of NG this winter to be in the 3$ range.
Originally posted here
