Tom Orr, director of research for Weeden & Co. LP securities brokerage, predicts that natural gas, this year’s worst-performing major commodity, will continue to fall below $3 per million BTU next month and rise to $4 in the fourth quarter.
Stockpiles of the fuel increased 90 billion cubic feet in the week ending on July 10, hitting 2,889 trillion cubic feet, a 15 year high. Demand by factories, steel mills and chemical plants, which make up 29% of U.S. demand, dropped 13% in 2009’s first 4 months year-over-year.
- United States Natural Gas (UNG): down 43.2% year-to-date
For more information on natural gas, visit our natural gas category.
Max Chen contributed to this article.