ETF Securities – Recovery Fuels Natural Gas Demand
Highlights
US natural gas prices are likely to stay under pressure in Q1 2015 if mild weather conditions persist and underground stocks approach five year average levels.
From March, we should see historically low prices and strong U.S. consumption encourage utilisation of natural gas by industrial producers.
Firms within the electricity generation sector, compelled by environmental legislation and abundant domestic supply, should continue to substitute coal for natural gas.
The aforementioned factors should ensure healthy demand for US gas in the year to come prompting a gradual climb in the natural gas price to US$3.6/MMBtu by the start of H2 2015.
Beyond 2015 important themes for natural gas are the development of the newly liberalised Mexican energy markets, construction of US LNG export terminals and the use of natural gas in transportation.
Important Information
This communication has been provided by ETF Securities (UK) Limited (”ETFS UK”) which is authorised and regulated by the United Kingdom Financial Conduct Authority (the ”FCA”).
