This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Current Natural Gas Price Decline Correctly Predicted By Energy Solutions, Inc.

VERONA, Wis., May 3, 2013 /PRNewswire/ -- Energy Solutions, Inc., an educational provider of natural gas price information and price trends, recently advised its clients to "sit tight" on natural gas purchases.  This ran counter to the advice provided by several financial firms who were promoting the purchase of natural gas commodities.

(Logo: )

Specifically, in its April 24, 2013, edition of The Advisor, Energy Solutions, Inc. provided the following pricing advice: 

Natural gas prices are being driven higher by financial firm recommendations advising investors to "go long" natural gas futures and to "go short" gold futures or crude oil futures.  As investors seek to profit from these recommendations, open interest in the natural gas futures market has exploded.  A surge of buying in natural gas futures is pushing natural gas prices higher, but Energy Solutions, Inc. advises patience.

A natural gas price rally, driven by speculative buying, will typically fail without supportive fundamentals of supply and demand.  Energy Solutions, Inc. believes this is what will occur for natural gas.

The electric power sector has an economic incentive to gravitate from the use of coal to natural gas.  This frees up gas supplies for injection into storage.  This factor, combined with ongoing production growth and improvements in pipeline and processing infrastructure, is expected to eliminate concerns over natural gas supply availability this summer.  When that becomes evident, natural gas prices will decline, and the front-month natural gas New York Mercantile Exchange (NYMEX) contract could fall below $4 per MMBtu.

On May 1, the front-month natural gas NYMEX price hit a 21-month high of $4.44 per MMBtu.  The next day, the Energy Information Administration reported a storage injection of 43 billion cubic feet (Bcf) for the week ending April 26.  Within ten minutes of the storage announcement, the front-month natural gas NYMEX price fell by more than $.20 per MMBtu. 

Sometimes, it is difficult to be patient when there are other players, like some of the financial firms, advising otherwise.  However, the benefit of the patience that Energy Solutions, Inc. has been advising is clients is starting to unfold.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.68 0.73%
FB $102.04 2.50%
GOOG $694.17 2.40%
TSLA $150.01 1.20%
YHOO $27.49 2.50%


Chart of I:DJI
DOW 16,125.97 +111.59 0.70%
S&P 500 1,876.80 +24.59 1.33%
NASDAQ 4,356.3710 +87.6080 2.05%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs