ORIONS Money Stocks

[coolguy613]

natural gas news

Morgan Stanley Cuts 2012 Natural Gas Forecast By 30%

By David Bird


Bloomberg
US natural gas price will average $2.70/mmBtu this year, Morgan Stanley estimates, a cut of 30% from the firm’s previous forecast.

Temperatures for the remainder of the winter won’t be as far above normal as they were in recent months, Morgan Stanley says. Large-scale output shut-ins won’t occur with prices above $2/mmBtu and gas storage still could end March at high 2.3 trillion cubic feet level.

Prices below $3.00/mmBtu could cause utilities to shift from coal to gas on the order of 2.0 bcf to 2.5 bcf/day, Morgan Stanley says.

Front-month futures are down 3.8% to $2.41/mmBtu.

Gas futures fell 7.7% on Tuesday, the biggest drop since April 2010. Last week gas futures rallied sharply from 10-year lows on record-high trading volume.

Record-high output, and lower demand caused by warm temperatures, have pushed gas inventories to record highs.

http://blogs.wsj.com/marketbeat/2012/02/01/morgan-stanley-cuts-2012-natural-gas-forecast-by-30/


might effect dej and tat