[mattduke]

What do you guys think?

[copious.abundance]

Sure, go ahead. Employment security for Maddog.

[Maddog78]

Yeah, might be.
Seems like around $3.50 is a bottom.
When it went to this range earlier this year it bounced back up over $4 shortly afterwards.

[Maddog78]

Did you buy?
I see it's back to almost $4 again today.
I guess the other day was the right time to buy.

[Maddog78]

Here's a surprise. Looks like the NG market isn't completely dead yet.
mattduke, when you made that post it was indeed the time to buy NG.
It's at $4.10 as I type this. I didn't buy any then but at least it looks like I might be able to keep my job if this carries on.

AMP Capital Buys Natural Gas on ‘Imminent’ Price Gain (Update1)


By Shani Raja

May 29 (Bloomberg) -- AMP Capital Investors, with $95 billion under management, is selling oil futures to buy natural gas contracts in anticipation of an “imminent” price spike.

The price of crude oil, which has almost doubled from last year’s December low, and natural gas, which has continued to tumble, has diverged so much that consumers will switch to the cheaper energy source, said Nader Naeimi, a Sydney-based strategist at AMP Capital, a unit of Australia’s biggest provider of pension plans.

“The price of natural gas is so low at the moment, and production’s been cut back so much, that a slight rise in demand is enough to trigger a huge price spike,” Naeimi said by phone today. “While other commodities have rallied, natural gas has been left substantially behind in the energy complex.”

Speculation of a global economic recovery has driven oil prices in New York up 93 percent since Dec. 19, when futures settled at their lowest since February 2004. The price of natural gas has slumped by more than a quarter over the same period.

The number of oil and natural gas rigs operating in the U.S. has more than halved from a two-decade high of 2,031 in September as the recession eroded demand, according to data published last week by Baker Hughes Inc.

“Spot is trading at much lower levels than long-dated natural gas contracts,” said Naeimi. “That means the market is expecting prices to rise. Everyone’s storing natural gas to sell at a higher price in the forward market. You also have a push for clean energy globally, which should benefit natural gas.”

[copious.abundance]

Maybe investors took my advice and decided to help support your job.

[AAA]

I think NG might go lower this summer. If it dips below $3.50 then I will be buying NG royalty trust and pipeline MLPs.

[kiwichick]

BUY

check rigzone

operational rigs down by 50% since last august