NEW YORK ( TheStreet) -- I was talking Wednesday with Jim Cramer about natural gas, which has had a stellar run in price in the last several weeks, breaching the $4/mcf price twice.
While I have watched the price of natural gas rally from $3.50 to $4, I did not believe that it represented a structural change in what has been a depressed profile for nat gas. And while $4 is not a particularly high price for natural gas given its historical price over the last decade, I do believe we now have some structural reasons to believe that the bottom has been put in on natty.
I think that $4.50 natural gas is easily reached this summer and perhaps can go as high as $5/mcf by the end of the third quarter. The massive surplus of gas in storage has finally been whittled down from an enormous 800bcf to now be less than 50bcf -- and that may fall under the five-year average dependent upon the next storage report. Sequestering of gas, along with a mad dash of gas drillers to move to liquids has left little increasing production, save for in the Marcellus play.
And that's likely where you'd need to go for a good stock to play this nat gas move, although those names, including Cabot Oil and Gas (COG), Range Resources (RRC), Southwestern Energy (SWN) and EQT Corp. (EQT) have already rallied strongly.I talk more about the nat gas opportunity with Jim in the video above. Follow @dan_dicker This article was written by an independent contributor, separate from TheStreet's regular news coverage.