Commentary by Eric Wilder – What a factor the weather has played the last twelve month concerning natural gas prices.  Hurricane after hurricane struck the Gulf of Mexico, damaging much of the oil and gas producing infrastructure located there.

The first half of December was one of the coldest for that period in Oklahoma history.  The second half of December, all of January and the first two weeks of February were the warmest in history.  The same was true for the rest of the country.

In December, 2005, natural gas in storage was 250 BCFG less than the same period in 2004.  Now, there is 300 BCFG more in storage than there was in January, 2005.  Why, then, is the future’s price of natural gas still above $7 per MCF?  Easy answer: the weather.

New York residents, getting used to short-sleeved shirts, got a reminder of winter this week when all-time record depths of snow fell.  The blizzard extended from the Carolinas to Maine and the message is simple:  don’t mess with Mother Nature.

What’s the real value of natural gas right now?  I don’t know, and neither does anyone else. http://www.ericwilder.com  http://justeastofeden.blogharbor.com  http://ericwilder.blogspot.com  http://ghostofachance.blogspot.com