The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
http://www.nymex.com/ng_fut_csf.aspx?product=NG
you may have to startat NYMEX.com and click through accepting their terms of use to see the data.
What you will find is the mkt for 07 and 08 is more like $8.5-$9 bucks. There is enough open interest to give some confidence as these prices being reflective of what the real buyers and sellers think.
I wouldn't put a lot of money on a long range forecast by Morningstar or anyone else. There are just too many variables (and I used to have to make markets in related markets -- it ain't easy). One hurricane and you are an idiot low. A mild winter and $15 gas ($100 dollar oil!) becomes a spot price of $7.1 in February.
Further forward, NYMEX prices are lower ($6's and 7's). This is primarily because of market imbalances. Banks make small producers sell forward production to hedge in a return on drilling/exploration loans. Buyers are much fewer and farther between. Some Utils might hedge (less after Enron blew up making "trading" a word on a par with pedophile) and perhaps some fertilizer manufacturers. But now that utils can float their energy sales prices, why bother? Let the customer take the pain if prices shoot up.
by Oui - Dec 5 9 comments
by gmoke - Nov 28
by Oui - Dec 95 comments
by Oui - Dec 812 comments
by Oui - Dec 620 comments
by Oui - Dec 612 comments
by Oui - Dec 59 comments
by Oui - Dec 44 comments
by Oui - Dec 21 comment
by Oui - Dec 164 comments
by Oui - Dec 16 comments
by gmoke - Nov 303 comments
by Oui - Nov 3012 comments
by Oui - Nov 2838 comments
by Oui - Nov 2713 comments
by Oui - Nov 2511 comments
by Oui - Nov 243 comments
by Oui - Nov 221 comment
by Oui - Nov 22
by Oui - Nov 2119 comments
by Oui - Nov 1615 comments