Thursday, March 10, 2011

Natural Gas Poised to Rise?

Natural gas prices are about to change course and rise due to several factors.  Natural gas prices have been depressed due to an amazing over-supply caused by new fracturing technologies combined with limited storage facilities.  There is currently an inadequate distribution chain for natural gas, and so the supply has had no where to go.  This will change with a new distribution infrastructure that is being built which will absorb the supply.  Natural gas will begin replacing the traditional sources of coal and oil.  Right now, electric utilities are in the process of converting from coal as a major electricity-generation system to natural gas.   Our algorithms will most likely spot the bottom in natural gas prices but no need to worry about perfect timing because the potential for gain is so great.

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