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I believe that the high for 2006 will be early in the year (before March) and is not likely to top $70. I will give a nominal high of $68.85 for the year.
At the end of 2006, we will see the price hovering around $45-$50...I will give a nominal price of $48.25 for WTI. This assumes that hurricanes do not take out the priduction areas in the Gulf any more than Ivan in 2004.
Natural gas is in a freefall correction cycle now which will continue through the summer. We have already seen the high for 2006 on January 3...$10.626 per MMBtu. (Just for fun, my prediction for the year low for NG is around $6.25 in the late Spring...)
Year end, the price of Natural Gas should be around $6.75...my prediction, a nominal price of $6.69.
I'd love to hear your feedback! :-)
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