BofA Slashes Natural Gas Forecasts
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Bank of America today cut its forecast on natural gas, sighting lower than expected demand. The bank reduced its average forecast for this year to $2.40 a million British thermal units from $3.18, and its 2013 estimate to $3.50 from $3.80.
“Although we expect continued low nat gas prices this summer, we do not believe that prices have to go a lot lower from the current levels for the market to come into balance,” Reported a BofA analyst.
“In the absence of a further decline in coal prices, we think U.S. natural gas will likely find a floor soon.”
Natural gas prices have been hit hard this year and are down 34% percent, due to low demand and improved drilling technology resulting in higher output and increased inventory.
A Bloomberg analyst survey predicts that the U.S. Department of Energy Information Administration is likely to report an increase in weekly storage levels to 48 billion cubic feet when it releases data tomorrow.
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“Although we expect continued low nat gas prices this summer, we do not believe that prices have to go a lot lower from the current levels for the market to come into balance,” Reported a BofA analyst.
“In the absence of a further decline in coal prices, we think U.S. natural gas will likely find a floor soon.”
Natural gas prices have been hit hard this year and are down 34% percent, due to low demand and improved drilling technology resulting in higher output and increased inventory.
A Bloomberg analyst survey predicts that the U.S. Department of Energy Information Administration is likely to report an increase in weekly storage levels to 48 billion cubic feet when it releases data tomorrow.
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