Friday, May 18, 2012

Natural Gas Rig Count UP in Latest Week and "It's Time to Short Natural Gas Again"

The front futures are up 15.5 cents at $2.749.
First up, Reuters:
US gas drilling rigs up in latest week - Baker Hughes
The number of rigs drilling for natural gas in the United States rose slightly this week, reversing a decline that had brought the rig count to a 10-year low.

The gas-directed rig count rose for the first time in four weeks, up by two to 600 this week, data from Houston-based oil services firm Baker Hughes showed on Friday.

One of the mildest winters on record has sharply cut gas demand and left a huge surplus in inventory that pushed gas prices low this year.

Front-month gas futures were little changed after the data came out, up 7.5 cents to $2.6690 per mmBtu. They had hit a 10-year low of $1.90 three weeks ago, a level that makes most dry gas drilling uneconomic....MORE
And from Slope of Hope:


Note: that's the ETF not the futures but I'm with him on this.