3 Reasons Natural Gas Is Heading A Lot Higher

12 May 2017   Prices

Commodity pricing is a complex thing, with a whole host of things affecting the price at which buyers and sellers transact, but almost all of those things fall into one of three categories; the fundamental, the political and the technical. These three things are often in conflict, but when they all point to the same thing a major, sustained move is coming. That is the case right now with U.S. natural gas and the resulting move could easily push prices to levels not seen for years. Supply & Demand Fundamentals Commodity specific fundamental factors such as supply and demand are the most influential thing on price. The basic economic theory of pricing tells us that, but it also suggests that the market will automatically adjust to changing conditions. When demand outstrips supply, for example, prices rise which slows demand and the higher price makes additional marginal production profitable, increasing […]

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