This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs