$2.00

Finally.  The wait is over.  The May CME/NYMEX natural gas contract dropped 4.7 cnts to close at $1.984/MMbtu.  June was lower by the same amount, closing at $2.105.  It is still another 10 year low and another milestone in the onslaught of shale production in the year-of-no-winter.  The last time we saw a Natgas futures contract close at this level was Jan 28, 2002.  For reference, that was one day before President Bush’s ‘Axis of Evil’ State of the Union speech.   Seems like a long time ago.

Yesterday April Natgas rolled off the board closing with still another 10 year low, and the third official day of April bidweek wrapped up a weak trading session. Day-gas cash prices are in the dog house.  It is EIA storage day, and a higher than expected build could be on the way.  There is nothing about the natural gas market that looks bullish.  Nevertheless, there has been no price collapse.  In fact, natty has been range bound for weeks now.  Do we know any more than we did two months ago?  Let’s put the current situation in a historical perspective.